Is China the Contrarian Trade of 2026? CHA50 vs US500

BitcoinWorld Is China the Contrarian Trade of 2026? CHA50 vs US500 As of early 2026, the debate over whether Chinese equities—tracked by the CHA50 index—are becoming the contrarian trade against the US500 is gaining traction among global investors.

With the US market facing stretched valuations and China’s economy showing signs of stabilization, some market participants are questioning if the long-underperforming Chinese market is poised for a reversal.

Why the CHA50 vs US500 Divergence Matters The CHA50, which tracks the 50 largest Chinese companies listed in Hong Kong, has significantly lagged the US500 over the past several years.

However, as of late 2025, the valuation gap between the two indices has widened to historically high levels. The forward price-to-earnings ratio of the CHA50 stands at roughly 10x, compared to over 22x for the US500.