China stocks

EV/EBITDA sector-relative strategy on China A-shares (SHZ+SHH) vs S&P 500 cumulative returns 2000-2025. Strategy returned 165.5% total vs 530.71% for SPY.

China stocks

EV/EBITDA Sector-Relative Value on China A-Shares: When the Signal Can't Help You

We backtested sector-relative EV/EBITDA on 25 years of China A-share data (SHZ+SHH). The signal fires every year — but -3.66% annual lag vs SPY and -64.54% max drawdown tell the story. Sector-relative discounts in China don''t close on value logic; they follow policy cycles.

P/E compression

China P/E Compression: -0.68% CAGR, -8.32% vs SPY

P/E compression on Chinese stocks delivers -0.68% CAGR vs 7.64% SPY, the worst absolute performance among all tested markets. Negative Sharpe and -63.70% max drawdown show P/E dynamics differ fundamentally in Chinese markets.