Shanghai, May 20. „We maintain a ‚positive and optimistic‘ outlook for Chinese stocks, with core support coming from a ‚dual resonance‘ of ample liquidity and improved earnings expectations,“ said a Chinese equity strategist at JPMorgan Chase during a media briefing at the 22nd JPMorgan Global China Summit on May 20.
According to the strategist’s analysis, liquidity in China’s stock market has been strong both domestically and internationally since the start of the year. Domestically, turnover indicators show active trading in Chinese markets, with margin buying as a proportion of total market turnover indicating a reasonable level of leverage. On foreign inflows, data from a global fund flow monitoring agency shows that funds it covered recorded net inflows of $13.1 billion into Chinese stocks from the start of the year to May 15. „Ample liquidity, along with expectations of stable and improving corporate earnings, provides solid support for the upward trend in Chinese stocks.“
JPMorgan Chase’s chief China economist and head of Greater China economic research believes that China is vigorously advancing the development of new productive forces such as high-end manufacturing. The true source of China’s economic growth is technological innovation, and future growth will shift from being „investment-driven“ to „technology and innovation-driven.“ This transformation will provide momentum for long-term economic growth.
The 22nd JPMorgan Global China Summit will be held in Shanghai from May 21 to 22. The summit brings together over 2,900 participants from more than 1,300 companies across over 35 countries and regions, who will discuss topics related to the Chinese and global economies with various speakers.
