You are here: Home - Saving & Banking - News -

Attractive outlook for Chinese stocks

Written by:

The Chinese equity market has recovered from a late 2007 correction to return to attractive levels, according to Richard Wong of Halbis, the active management specialist of the HSBC Group.

The Chinese markets saw a sharp correction late last year due to concerns over the US outlook and rising domestic inflation levels. However, 2008 has seen the price to earnings ratios of Chinese shares return to more attractive levels, according to Wong, with earnings growth remaining strong.

Wong said he expects uncertainty in the short term, but that Chinese H and red chip shares would resume an upward climb in the second quarter of this year, led by greater clarity on the US situation and whether rising inflation can be curbed.

“We believe a US recession may marginally slowdown China’s export growth, but the impact would most likely not be too severe,” Wong explained. “This is because China has emerged as a global economic powerhouse in its own right. Over recent years, China has increasingly broadened its export base and reduced its dependence on the US, which accounted for about 19% of China’s total exports in 2007.”

He added: “We believe the Chinese Government may increase interest rates to help reduce inflation ahead of the National People’s Congress (NPC) meeting in March 2008. However, any interest rises would not have a substantial negative impact on Chinese equities.”

Related Posts


Tag Box




Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co... Awards 2018

Now in their 21st year, our awards recognise the companies offering the best products and services to consumers

Money Tips of the Week

Read previous post:
Investors laugh all the way to the bank

Banking stocks have dominated private investors’ trades over the past week, according to TD Waterhouse.