Ark ETF’s Cathie Wood keeps ‘open mind’ on China shares after dumping them in July sell-off

Wood dumped Chinese stocks as Beijing’s clampdown wiped out about US$1 trillion in onshore, Hong Kong and US markets

‘I’m sure we’re going to find some very interesting companies in the innovation space, and so we’re going to keep an open mind there’

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Catherine Wood, chief executive officer of ARK Investment Management speaks during a virtual conference on cryptocurrency in February. Photo: Bloomberg

Published: 9:51am, 11 Aug 2021Updated: 9:51am, 11 Aug 2021

Cathie Wood said valuations of Chinese stocks will likely remain depressed for a while. She is not shutting the door on them just yet.

“So is China now uninvestable?” the head of Ark Investment Management said on a webinar hosted by the firm Tuesday. “Well, I would say in any of the areas that we are looking at right now, the multiple structure, the valuation structure of those companies is down and probably not going to come back very quickly, may even go down more.”

“I’m sure we’re going to find some very interesting companies in the innovation space, and so we’re going to keep an open mind there,” she added.

Wood dumped Chinese stocks in July as Beijing’s clampdown on sectors ranging from education to technology wiped out about US$1 trillion off shares listed on the mainland, Hong Kong and the US last month.

China’s crackdown on Didi Global on data security triggered a US$1 trillion sell-off in Chinese stocks in July: Photo: Reuters

Her largest fund, the ARK Innovation ETF, had less than 0.2 per cent of its US$23 billion in assets invested in Chinese companies as of August 9, compared with 8 per cent in February, according to data compiled by Bloomberg.

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