5 hours Ago By Zhang Shidong
At risk is Beijing’s policy credibility, according to UK fund manager Abrdn. A lack of details on what goodies might be coming could sour the narrative, BlackRock said. The onus is on the standing committee of China’s legislature to live up to heightened expectations when it meets later this month or next month.
06:57 Boom or bust: how sustainable is China’s stock frenzy? Here are some takeaways on the outlook for Chinese stocks by some global fund managers and investment banks. BlackRock: China is the latest example of how cheap valuations can turn into a stock market rally once a catalyst emerges, the New York-based money manager said in a report. China’s stimulus signal prompted the firm to go “modestly overweight” especially given depressed valuations.
“Chinese shares have surged since the September Politburo meeting on hopes that major fiscal stimulus may be on the way,” strategists at BlackRock Institute led by Wei Li wrote on October 14. “A lack of details so far has disappointed some investors, so we eye policy announcements for more clarity. “Details have been scant, so we could change our view if future announcements disappoint.
We still think China faces long-term, structural challenges, like economic and geopolitical competition with the West, government debt and population ageing.”.
