The last four years haven’t been easy for China, which has faced a property crisis, slower growth, and a declining population — leading to a downturn in global investor interest. Since their 2021 peaks, Chinese stocks have lost more than half of their value, and India has overtaken Hong Kong as the world’s fourth-largest stock exchange. But things could be turning a corner…

• Bloomberg reports that Chinese stock benchmarks have rallied over 20% from their recent lows — placing them back in bull market territory.
• Skeptical investors are now pouring back into Chinese stocks amid a $278B stimulus program, with record buying seen in China’s largest onshore ETFs.

Not so fast… Although Ronald Temple, Lazard’s Chief Market Strategist, sees potential for China to be “one of the best performing equity markets as a trade over the next 12 to 18 months,” it’s important to note that China has experienced false recoveries in the past — only to continue free falling. Additionally, the upcoming US presidential election, with Donald Trump on the Republican ticket, adds uncertainty. Trump has proposed hefty tariffs of over 60% on Chinese goods, which could snuff out any chances of a China comeback.