Standard Chartered considers Chinese equities a key factor.
However, Chinese stocks are not without their problems right now.
- China is grappling with deflationary pressures
- China is expected to counter US import restrictions by increasing exports to non-US markets
- Additional stimulus measures are expected to drive domestic demand
Stan Chart favors onshore equities rather than offshore ones, as they are more likely to benefit directly from any favorable policy developments.
- analysts note that continued US-China tensions and structural challenges, including a downturn in the real estate market and deflationary concerns, are likely to keep share price growth under control.
This article was written by Eamonn Sheridan at www.forexlive.com.
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