International investors and analysts are expressing renewed optimism in the Chinese stock market, forecasting a significant rally following recent policy adjustments by China’s leadership.
Last week, the Political Bureau of the Communist Party of China Central Committee held a meeting on economic work, highlighting efforts to bolster the capital market. Concurrently, the People’s Bank of China unveiled a series of major monetary policy adjustments aimed at stimulating economic growth.
Shayne Elliot, CEO of ANZ Group Holdings, dismissed concerns over China’s viability as an investment destination, describing fears about the “demise of China” as “massively overblown,” according to Bloomberg. Elliot, who announced plans in March to expand ANZ’s presence in China, added that the bank continues to be treated “extraordinarily well” in the country.
David Tepper, founder and president of Appaloosa Management, shared similar sentiments in an interview with CNBC. Tepper praised China’s central bank for its recent actions, stating it had “exceeded expectations” with the policy announcements. He expressed confidence in the market, saying he would buy “everything” in China, and emphasized the positive impact of stimulus efforts on bonds, currencies, and stocks.
Stephen Jen, CEO of Eurizon SLJ Capital, also projected a promising outlook for Chinese equities. In a report circulated to clients on Friday and cited by Bloomberg, Jen stated that Chinese stocks are extremely undervalued and predicted that a “serious rally” is “entirely possible.”
The combined optimism from these financial leaders underscores a growing consensus that China’s recent policy measures could catalyze a significant upswing in its stock market. Investors worldwide are closely monitoring these developments, anticipating opportunities in what is considered one of the world’s most dynamic economies.
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Chinese stock market rally expected, say intl investors and analysts
cgtn.com
