Is the Chinese equity rally over?
Singapore Sales Trader
Earnings in the first quarter of this year were on the weak side and we may not see any significant difference this time round. However, we do see a pick-up in credit growth, something that is often followed by some slight growth in earnings. What tends to happen is that by the second and third quarters of a given year we may see the market starting to recover as a result of increased credit conditions. This pattern could be repeated again this year.
When looking at the Chinese market a good point of departure is to explore the 2019 earnings estimate for the MSCI China Index – growth of approximately 14%. For the CSI 300, earnings growth is approximately 17%. To be frank, we’re not going to see such numbers anywhere in the rest of world.
Latest Market Insights
Quarterly Outlook Q2 2022: The End Game has arrived
- Shocks from covid and the war in Ukraine have forced the global financial and political world to change, but what will the end game be?
Energy crisis could turn energy stocks into secular winnerWith long-term expected returns for the global energy sector close to 10%, we look at 40 stocks that could be set to cash in.
The great EUR recovery and the difficulty of trading itIf the terrible fog of war hopefully lifts soon, the conditions are promising for the euro to reprice significantly higher.
Tight commodity markets – turbocharged by war and sanctionsWith supply already tight, commodities keep powering on. But will it last for yet another quarter?
Between a rock and a hard placeGeopolitical concerns will add upward price pressures and fears of slower growth, while volatility will remain elevated.
The Great ErosionInflation is everywhere and central banks try to combat it. But will they get it under control in time?
Australian investing: Six considerations amid triple Rs: rising rates, record inflation and likely recessionWhile global financial markets are struggling in an uncertain world, the commodity-heavy Australian ASX index is poised to keep a positive momentum.
Cybersecurity – the rush to catch up with realityWith the invasion of Ukraine, governments and private companies are rushing to reinforce their cyber defenses.