JPMorgan acknowledged that China offers a safe haven in global equities as it is easing policies to boost growth at a time when most of the world is in a tight monetary situation.
According to Arab Net, JP Morgan's Asian equity strategist, Mixo Das, explained: If investors are looking at challenges in all markets, China is emerging as something that offers resilience or a safe haven from many of these risks.
Optimism about pro-growth policies, along with China's moves to co-exist somewhat with the coronavirus even while adhering to the zero-Covid approach, has brought the CSI 300 index closer to entering a bull market. The index is up nearly 19% from its lowest level in April. It fell 1.5% on Wednesday after President Xi Jinping once again said the zero-Covid policy is the most effective.
Das added that China's easing of some measures puts its stock market in a very good position, especially since stock valuations are very cheap even after the recent rises.
He pointed out that the CSI 300 index is trading at a profit multiplier for the next 12 months at 13.1 times, compared to 16 times for the S&P 500 index, according to data compiled by Bloomberg and viewed by Al Arabiya.net.
Hong Kong-based strategist JP Morgan joins a growing list of market participants who are becoming more upbeat about the outlook for China this month, helping the CSI 300 Index outperform its global peers by the most since 2014 this quarter.
