Capitalist Roader Fund: What goes up? (Hold)

Like a breaching, battle-scarred orca, the SCI cleared the 2,000-point mark this week, but we’re not convinced it won’t return to the watery depths in the near future. In the meantime, we’re enjoying the ride: the SCI is up 147.5 points, or about 7%, from its close last Friday, and while we haven’t been doing as well as the market overall this week, both Industrial and Commercial Bank of China (ICBC, 601398.SH) and Anhui Conch Cement (600585.SH) are up – by 4.4% and 2%, respectively, from their Friday closes.

Anhui Conch is continuing to benefit from positive sentiment around the stimulus package, though it’s confusing to us why everyone suddenly seems to have changed their minds about the ability of the government infrastructure spending to make up for a collapsing property market. ICBC no doubt got a bit of a boost on news that Central Huijin, an arm of China Investment Corp, was putting US$175 million into banking A-shares.

Overall, the fund is down 38% since June 3, while the market is down a bit more than 41%.