Chinese stocks expected to see gains for the rest of the year after positive survey results

From BNN Bloomberg: 2024-07-02 22:46:40

Analysts and money managers predict an upbeat second half for Chinese equities, with expectations that the CSI 300 Index will see its first annual gain since 2020. Over 93% of respondents believe the market will attract foreign inflows after June’s 44.4 billion yuan withdrawal, citing attractive valuations and potentially stronger growth.

The upcoming Third Plenum meeting is expected to bring further measures to support the Chinese economy, emphasizing new quality productive forces to boost innovation and productivity. However, uncertainties surrounding the global environment, US election, geopolitical tensions, and a weaker yuan may pose risks to the market’s growth.

Although a rebound in Chinese stocks is anticipated, there are reasons for caution, with the Hang Seng China Enterprises Index falling more than 8% since May and potential technical corrections. Expectations include more mortgage rate cuts and relaxed property restrictions to aid the real-estate sector, with hopes for fresh capital inflows from overseas investors, insurance companies, and mutual funds.



Read more at BNN Bloomberg: Chinese Stocks to Resume Advance for Annual Gains, Survey Says