Air China is the poster-boy for consumer discretionary stocks in China, and it has blown away the index during the past two months. Morgan Stanley has been recommending it, and I would suppose that it is just the sort of large-cap, blue chip consumer stock that foreign investors would pile into.

I noted at year-end that consumer discretionary stocks overall were the best performers in the Shenzhen 300, not surprising given the shift in economic growth to consumption.

China Air
Source: Bloomberg