Posted inAT+

‘Avoid-China’ trade an opportunity for Xi Jinping

The value-investing argument of the ages is playing out over whether China’s tech crackdown is a reason to cut ties with the mainland or a necessary risk worth taking.

On the “sell China” side are two household names from different generations: George Soros and Cathie Wood. Soros, of course, is synonymous with the 1990s. His short-selling exploits brought the UK economy to its knees early in that decade and then made Malaysia’s 1997-98 period a living hell.

Cathie Wood is Wall Street’s most-followed guru at the moment. Her flagship ARK Innovation exchange-traded fund, like the investment firm that bears the Soros name, is dumping its China exposure.