China’s Stocks Are ‘Most Attractive’ Globally on Economy, StanChart Says
By Bloomberg News - Jul 4, 2011
China’s stocks are the “most attractive” globally and investors should buy more of the nation’s equities as the government achieves a “soft landing” for the economy, Standard Chartered Plc (STAN) said.
The benchmark Shanghai Composite Index rose 1.8 percent to 2,807.88 at 2:03 p.m. local time, extending a two-week rally, on speculation reports showing a slowdown in manufacturing and services will allow the central bank to end its policy tightening campaign after four increases in borrowing costs since October. The Hang Seng China Enterprises Index of so-called H shares traded in Hong Kong climbed 2.3 percent.
“You should be overweight China on a three-month and a 12- month view because the soft landing in China is successful and we expect the worst is priced in,” Michael Preiss, chief equity strategist at the London-based bank, said in a Bloomberg Television interview from Singapore.
The Shanghai gauge has climbed 4.5 percent since June 23, the day before China’s Premier Wen Jiabao said efforts to stem inflation have worked. Non-manufacturing industries expanded at the slowest pace in four months in June, a report from the China Federation of Logistics and Purchasing said yesterday. A separate report on July 1 showed a manufacturing index declined last month to the lowest level in 28 months.
Chinese regulators discussed the possibility of targeted loosening of policies, including for small and medium-sized businesses, local government finance vehicles and the automobile industry, during meetings with economists, the China Business News reported today, without saying where it got the information.
bloomberg.com
|
