Standard Chartered consider Chinese equities a core holding.
But, Chinese stocks are not without their problems currently.
- China grapples with deflationary pressures
- China is expected to counteract U.S. import restrictions by boosting exports to non-U.S. markets
- Additional stimulus measures are expected in order to drive domestic demand
Stan Chart favours onshore equities over offshore ones, as they are more likely to benefit directly from any favorable policy developments
- analysts note that persistent U.S.-China tensions and structural challenges, including a property market slump and deflation concerns, are likely to keep share price growth subdued.
This article was written by Eamonn Sheridan at www.forexlive.com.
