HONG KONG - The world-beating rally in Chinese stocks is failing to convince many global fund managers and strategists.
Invesco, JP Morgan Asset Management, HSBC Global Private Banking and Wealth, and Nomura Holdings are among those viewing the recent rebound with scepticism and waiting for Beijing to back up its stimulus pledges with real money. Some are also concerned that many stocks are already reaching overvalued levels.
Chinese shares have skyrocketed since late September on a barrage of economic, financial and market support measures. The Hang Seng China Enterprises Index, which comprises Chinese stocks listed in Hong Kong, has jumped more than 30 per cent over the past month, making it the best performer among more than 90 global equity gauges tracked by Bloomberg.
"In the short term, sentiment could overshoot but people will go back to fundamentals," said Mr Raymond Ma, Invesco's chief investment officer for Hong Kong and mainland China.
Due to this rally, some stocks have become "really overvalued" and they lack a clear value proposition based on their likely earnings performance, he added.
Stimulus announced by Beijing has included interest rate cuts, freeing up of cash at banks, billions of dollars of liquidity support for stocks and a vow to end the longterm slide in property prices.
While there is plenty of optimism that could underpin a sustainable equity rally, there have been a number of false dawns before, most recently a rally in February that completely unwound.
هذه القصة مأخوذة من طبعة October 08, 2024 من The Straits Times.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة October 08, 2024 من The Straits Times.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
Jail and cane for man who preyed on 3 girls, including sister
A 27-year-old serial sex predator who preyed on three girls, including his younger sister, was sentenced to 16 years in jail and 15 strokes of the cane on March 10.
S'pore small but 'far from powerless' in unpredictable world: Seah Kian Peng
Global disruptions in trade, technology and security will impact Singapore, but the Republic is \"far from powerless\" despite its small size, said Speaker of Parliament Seah Kian Peng on March 10.
US markets trailing the world as the aura of America First fades
Investors have a growing list of reasons to look elsewhere as mood sours in the US
Singapore stocks decline as markets across Asia end mixed
• STI falls 0.4%; losers beat gainers 320 to 195 • Frasers L&C Trust tops STI; Hongkong Land comes in last • Hang Seng sheds 1.9% amid China tariffs on US farm goods
Hawkers must operate stalls themselves to prevent subletting: Koh Poh Koon
Hawker centre stallholders have to operate their stalls personally as a measure to prevent subletting, as this keeps barriers to entry low for small businesses and preserves the authenticity of the hawker culture, said Senior Minister of State for Sustainability and the Environment Koh Poh Koon in Parliament on March 10.
PSG The Best We Faced This Term
Robertson says Liverpool have to improve their off-the-ball work and attack to secure quarter-final spot
IN FULL BLOOM
Here are five ways to experience Japan's sakura season in all its beauty
Swiatek with another quick, commanding win
Defending champion Iga Swiatek crushed Dayana Yastremska 6-0, 6-2 and 2023 winner Elena Rybakina powered past Katie Boulter 6-0, 7-5 to reach the fourth round of Indian Wells on March 9 with displays of dominance.
Coffee shop operator, 76, jailed for pushing man, 80, leading to his death
Both men had quarrelled before aggressor pushed victim, who fell and suffered skull fracture
Man who worked with young people at PA jailed for sexually assaulting teenager
A man who previously worked with young people at the People's Association (PA) has been handed a jail sentence of 10 years and six months for sexually assaulting a then 16-year-old boy.
