Positive: International financial institutions are more positive on China's stock market and economic prospects.

From Global Times: 2024-05-21 11:45:00

International financial institutions like Goldman Sachs and UBS have raised their targets for China’s stock market, citing confidence in the country’s economic prospects. The MSCI China Index has recovered 31%, outperforming global markets. China’s A-share market is expected to replicate Japan’s success after reforms, attracting more global capital.

Chinese Premier Li Keqiang emphasized the financial sector’s role in serving the real economy and strengthening financial security. Authorities are urged to reform the local financial management system and prevent systemic financial risks. Recent policies have boosted market confidence, with the A-share market expected to become a source of wealth for the people.

International financial institutions have upgraded their forecasts for China’s economic growth in 2021. The European Commission raised its projection to 4.8%, reflecting growing confidence in the Chinese economy. Foreign enterprises are optimistic about the China market, with a 20.7% increase in newly established foreign-funded enterprises in Q1 2021.

Foreign-funded financial institutions are expanding their presence in China, with companies like Mastercard’s Chinese joint venture opening for business. Allianz Global Investors obtained approval to operate as a wholly foreign-owned public fund management company. Analysts predict more international capital flowing into China’s mainland and Hong Kong stock markets in 2021.

China’s economy showed stable recovery in April, with the issuance of 1 trillion yuan worth of special treasury bonds expected to boost investment and economic recovery. Analysts advise patience and confidence in China’s economy and stock markets, emphasizing the potential for value investing to bring excess returns for investors.



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