CHIQ: China’s Consumer Discretionary Sector Headed For Major Speedbumps (NYSEARCA:CHIQ)

• China’s consumer discretionary sector has seen extreme gains over the past few months as investors pile into the only major area of global economic growth.
• China’s consumption has grown at a fast pace over the past decade, but growth has decreased substantially over the past few years as its housing market becomes unstable.
• Recent surprise defaults of AAA-rated state-owned-enterprises have sparked fears of hidden widespread risks in China’s major corporations.
• Despite risks, valuations of China’s major consumer discretionary companies have nearly doubled this year.
• The China consumer discretionary ETF CHIQ’s performance may reverse soon as the PBOC looks to stop the Yuan’s rise and the U.S. flirts with delisting Chinese firms.

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