A Bloomberg survey has markets optimistic about a rebound in Chinese stocks in the second half of this year, as global fund returns and corporate profits improve.
In this regard, analysts and asset managers expected that the Chinese stock market benchmark CSI 300 index would record annual profits by the end of 2024 for the first time since 2020, and the survey results also suggested that the Hang Seng Index would break the annual loss streak that the index has suffered for 4 consecutive years.
Meanwhile, about two-thirds of the survey respondents said earnings of companies in the MSCI China Index and the CSI 300 China Stock Market Index would fall in the next six months, with more than 93% expecting the world’s second-largest stock market to attract foreign inflows after global funds sold 44.4 billion yuan ($6.1 billion) of Chinese stocks in June, the biggest monthly outflow since October.
A participant in the Bloomberg survey said that the Chinese economy will recover gradually, and thus the Chinese stock market will benefit from the potential recovery, and investors will reap profits from the rise in technology stocks.
