Brussels – Chinese equities continue a remarkable ascent, defying a single-day dip wiht continued bullish signals, according to Indosuez investment strategist Jérôme Van der Bruggen.
Since the end of June, the CSI300 index has surged 15 percent, fueled by a important valuation disparity and increasing domestic investment. This rally presents opportunities for investors seeking growth, but also carries heightened risk due to the inherent volatility of Chinese markets. The potential for further gains remains,though investors should prepare for significant corrections.
Van der Bruggen, speaking to ABM Financial News, highlighted a substantial difference in valuations between Chinese stocks and their international counterparts. While the S&P 500 trades at approximately 22 to 23 times earnings, Chinese equities are currently valued at 12 to 13 times earnings.
Contributing to the rally is a shift in Chinese savings habits, with increasing amounts of capital flowing into the stock market. “Chinezen hebben veel spaargeld en dat geld vindt langzaam zijn weg naar de beurzen,” Van der Bruggen noted.
Despite acknowledging the potential for volatility-Chinese markets are demonstrably more prone to swings than, for example, U.S. markets-Van der Bruggen remains optimistic. “Maar de rally is nog ver van zijn piek,” he stated, suggesting further upward momentum is possible.
Copyright: ABM Financial News / info@abmfn.nl
ABM financial News is dé leverancier van beursnieuws in de Benelux. De informatie in dit artikel is niet bedoeld als professioneel beleggingsadvies of als aanbeveling tot het doen van bepaalde beleggingen.
