,China

Why investors think China's recent rebound is short-lived

It's the same old ‘Chinese medicine’ , they say.

According to BNP Paribas, while investor opinion seems divided on China, most still feel the recent bounce in
Chinese equities, driven by the government’s growth-supporting measures, is temporary.

Here's more:

Most investors feel the recent measures, though subtly different from the ones adopted earlier, are essentially the same old ‘Chinese medicine’ (pump priming through investment). Investors are looking at the November Party Congress for guidance about growth and liquidity in 2014.

Most believe the government is likely to scale down its growth target, but that this won’t be a shock to the market. Most investors don’t expect announcements on structural reforms in November, and are treating the recent rally in Chinese stocks as a short-term bounce.

Usually such bounces last till the Chinese new year, though some investors seem willing to take profit well ahead of that deadline.  

Get Investment Asia in your inbox
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

The Lion City also has the highest insurance penetration amongst the six markets at 5.9%.
On back of a modest increase in US interest rates.
As Asian hedge funds outperformed peers.
Lousy start for 2014, says analyst.
Santa is on his sleigh and the elves won't be back until Jan 6.