Reading the tea leaves: a volatile year ahead for China’s market amid policy uncertainty

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After a forgettable year, Morgan Stanley, UBS, Goldman Sachs and others make their predictions for Chinese equities in 2025.

Although a readout from a Politburo meeting in December used language last seen when the Covid-19 pandemic and the global financial crisis wreaked havoc on the nation’s economy, traders say China’s policy pledges have to be followed by action and that a lack of follow-through has been holding the stock market’s revival back.“Until there are more concrete details on how the government implements more proactive policies, the market will remain range bound and prone to disappointment,” Aaron Costello, head of Asia at Cambridge Associates, said in an interview.“For Chinese equities to meaningfully outperform, we need to see the policy announcements result in an actual easing of deflationary pressures and a rebound in corporate earnings, both of which will take time.

Goldman Sachs is an outlier.

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Article Details

Author / Journalist: Zhang Shidong

Category: Business

Markets: Hong KongChina

Topics: Chinese Market Earnings Investment Group Growth Stock Global Last Beijing’s Policy

Source Website Secure: Yes (HTTPS)

News Sentiment: Neutral

Fact Checked: Legitimate

Article Type: News Report

Published On: 2025-01-04 @ 10:00:11 (2 days ago)

News Timezone: GMT +8:00

News Source URL: scmp.com

Language: English

Article Length: 295 words

Reading Time: 2 minutes read

Sentences: 9 lines

Sentence Length: 33 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © SCMP

News ID: 24878066

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