The trade battle between the U.S. and China hasn’t just hurt American farmers and Chinese exporters; it has also hit U.S. investors who pumped $2.8 billion into China funds in the first four months of 2019 on top of the $6.4 billion they added last year. So far this month alone, Chinese stocks are down 13%, according to MSCI.
Many U.S. investors seem to have raised their exposure to China—despite the protracted trade dispute—largely in hopes of capturing higher future returns from the country’s brisk economic growth.
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Their numbers aren't believed.
Trust