Our first week as an all-cash fund – really, where we should have been all along – has gone swimmingly. The same is not true for the market, which has been gradually drowning in a gooey mess of broken dreams. Any hopes that the National People’s Congress would have brought with it a magic cure for the market have been dashed. What is left is not despair and panicked selling, but a sort of lingering melancholy.
And so we find the Shanghai Composite Index down 2.98% over the week. Industrial and Commercial Bank of China (ICBC, 601398.SH) has tracked the market, as it usually does, falling 3.16%. We’ll admit that we feel no small amount of schadenfreude as we watch it fall.
The bright light of the market for the time being seems to be infrastructure-related stocks. Our old flame Anhui Conch Cement (600585.SH), which we sold at RMB32.90, is now trading up about 3% from that price. No real surprise there – the question is how long it can last.
The Capitalist Roader Fund is holding steady, down 33% since June 3, 2008. The SCI is down 38%.