Chinese Equities: Why Have Markets Soured on Expectations?

Principal Asset Management Chief Global Strategist Seema Shah says the US election and bipartisan anti-China policy rhetoric is likely to weigh on Chinese equities even though valuations are "already very cheap." A growing chorus of global firms have downgraded their expectations for China’s stock market in the last few weeks - most recently JPMorgan which followed similar moves by former China bulls UBS Wealth Management and Nomura. Principal has held an underweight stance on China since August 2023.
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[thelammas]

The most important part was “it is very difficult to find anyone with anything positive to say and valuations are very cheap”. I’m buying more.

[CTOInformation]

all investors say negative stuff about China on TV, and behind the doors everybody buys China. LOL

[louistan]

When everyone is negative that's when you should consider tipping your toe into the waters; strategically.

[MrKenng]

Let's hope that the world's economy will be much worse off than now. Let's also pray and hope that economic indicators like GDP PMI and consumer confidence will all come in weaker than expectation.

[steveong]

This is a great time and opportunity to buy China large banks with yields greater than 7% and payout ratio of only 30%. The dividend is also spread between interim and final wef 2025!

[lastChang]

Seriously, to gain some confidence back from investors, the Chinese 🇨🇳 government needs to *stop its lies.*