Cathie Wood Sold Her Chinese Stocks. Should You?

·5 min read
Cathie Wood Sold Her Chinese Stocks. Should You?

Investing in China has always come with a special set of risks, but for most of modern history, investors have been able to ignore those as Chinese growth stocks have delivered. Suddenly, those risks, which include investing in a country where American standards of rule of law and investor protections are non-existent, are back in focus. The Chinese Communist Party wiped out nearly all the value in the for-profit education sector in that country when it said that tutoring companies like New Oriental Education Group and TAL Education Group would be barred from making profits, and that they would have to register as non-profit enterprises.

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