Time To Pour Some Cold Water On China''s Red-Hot Stock Rally
Time To Pour Some Cold Water On China''s Red-Hot Stock Rally By George Lei, Bloomberg markets Live Analyst and Commentator Chinese tech stocks are poised for their biggest weekly advance in months, boosted by news of a potential wrap-up of the probe into Didi as well as relaxed Covid curbs in Shanghai and Beijing. Still , it might be premature to call a bottom in the tech sector, let alone the broader market. The Nasdaq Golden Dragon China Index has rallied about 15% since last Friday, poised for the best week in almost three months; the Hang Seng Tech Index is also on course for its biggest weekly gain since the end of April. Chinese equities are “bumping along the bottom” and will stage a “very strong and sustained recovery” once there’s a clear exit strategy from Covid Zero, said Chi Lo, a senior strategist at BNP Paribas Asset Management. JPMorgan also sees a “turning point” in China stocks with buying opportunities emerging, according to a Monday note by strategist Marko Kolanovic.
Time To Pour Some Cold Water On China''s Red-Hot Stock Rally
Time To Pour Some Cold Water On China''s Red-Hot Stock Rally By George Lei, Bloomberg markets Live Analyst and Commentator Chinese tech stocks are poised for their biggest weekly advance in months, boosted by news of a potential wrap-up of the probe into Didi as well as relaxed Covid curbs in Shanghai and Beijing. Still , it might be premature to call a bottom in the tech sector, let alone the broader market. The Nasdaq Golden Dragon China Index has rallied about 15% since last Friday, poised for the best week in almost three months; the Hang Seng Tech Index is also on course for its biggest weekly gain since the end of April. Chinese equities are “bumping along the bottom” and will stage a “very strong and sustained recovery” once there’s a clear exit strategy from Covid Zero, said Chi Lo, a senior strategist at BNP Paribas Asset Management. JPMorgan also sees a “turning point” in China stocks with buying opportunities emerging, according to a Monday note by strategist Marko Kolanovic.