Connect with us


Signs point to a Chinese stock market turnaround after two hard years

News Agencies



Investors have, however, seen a glimmer of hope in addressing some of these issues in the past few weeks. On November 11, the State Council announced a 20-point plan to fine-tune its Covid-19 policy, including reducing the quarantine period for inbound travellers, stepping up vaccination and preparations for medical facilities and medication.

These are necessary conditions to open up borders and facilitate the movement of people across provinces. It is interesting that this announcement comes as the number of infections is again picking up, especially in Guangdong province.

Having said that, it is important for investors to be realistic about the pace of reopening, especially with potential surges in both flu and Covid-19 cases as winter approaches. Daily cases of Covid-19 have risen to over 20,000 and some cities have reintroduced policies to limit the movement of people.


Still, the recent Covid-19 announcement should pave the way for a gradual relaxation in policy while keeping severe cases and deaths manageable.

China’s first Covid deaths in 6 months tests its coronavirus policy easing


China’s first Covid deaths in 6 months tests its coronavirus policy easing

At the same time, the central bank and regulator have announced a 16-point rescue plan for the property sector, which essentially points towards better access to financing for both developers and buyers, and for development projects to be completed.


Although this is a subtle shift from pressuring developers to improve their balance sheets and deleverage, it is necessary, considering the importance of the real estate market to the broader economy and financial system. Some flexibility can go a long way to ensuring that economic growth can be maintained.

China has also returned to the world stage. While the three-hour meeting between President Xi Jinping and his US counterpart Joe Biden on the sidelines of the G20 summit in Bali is unlikely to completely resolve the long-standing challenges between the two countries, it does represent a diplomatic re-engagement after a difficult summer. Xi also met European and Asian leaders, engagements that hopefully address some investors’ concerns over decoupling.

On the delisting risk for Chinese companies in the US, the Public Company Accounting Oversight Board has completed a seven-week audit of these companies. While the outcome remains uncertain, the collaboration is a positive sign that regulators are genuinely looking to reach a workable solution.


Again, it is important to reiterate that these challenges are considerable and that progress has been modest, though in the right direction. China’s economy should be on track to recovery next year, in contrast to the US and European economies that are facing recession headwinds as a result of high inflation and interest rates.


Investors should not dismiss the Chinese market despite its disappointing performance over the past two years. A lot of the bad news is already reflected in asset prices and the Chinese market should again be worthy of attention.

Tai Hui is chief market strategist for the Asia-Pacific at JP Morgan Asset Management

The news is published by EMEA Tribune & SCMP210520-twitter-verified-cs-70cdee.jpg (1500×750)

Continue Reading


Breaking News

Editor Pick’s

Latest Entertainment

Entertainment28 mins ago

Priscilla Presley files to control Lisa Marie Presley’s estate despite Riley Keough being named trustee

Lisa Marie Presley, Priscilla Presley and Riley Keough pose after placing their handprints in cement at TCL Chinese theatre in...

Entertainment1 hour ago

Feminist Jane Fonda once ‘saw women as weak’

Jane Fonda is opening up about her cancer treatment. (Photo: REUTERS/Mario Anzuoni) Jane Fonda has been an outspoken feminist for...

Entertainment3 hours ago

‘A Thousand and One’ wins Sundance grand jury prize

“A Thousand and One,” a drama about an impoverished single mother and her son in New York City, won the...

Entertainment4 hours ago

T.J. Holmes and Amy Robach will depart ‘GMA3’ amid romance: sources

ABC is looking to cut ties with Amy Robach and T.J. Holmes amid their headline-making romance. (Photos: Getty Images) After...

Entertainment4 hours ago

‘Infinity Pool’ stars Mia Goth and Alexander Skarsgård on the bonkers X-rated scenes that shocked Sundance

Mia Goth takes aim in Brandon Cronenberg’s dark horror satire Infinity Pool. (Photo: Neon/Courtesy Everett Collection) Like father, like son....

Entertainment5 hours ago

The Last of Us officially renewed for season 2, and gamers know what that means

We haven’t heard the last of The Last of Us. HBO has officially renewed the post-apocalyptic drama starring Pedro Pascal...

Entertainment6 hours ago

Jay Leno’s very bad week: He breaks several bones in motorcycle crash as CNBC cancels ‘Jay Leno’s Garage’

Jay Leno broke his ribs in a motorcycle accident; days later, CNBC announced it canceled the late night legend’s show...

Entertainment6 hours ago

‘Shrinking’ star Jason Segel never thought mental illness was stigmatized: ‘I’ve asked for help so many times in my life’

Jason Segel in Shrinking (Photo: Apple TV+) Jason Segel readily admits he gets typecast for a very specific role: “Your...


Latest Sports

Sports28 mins ago

‘We got it out’: Jack Edwards reveals what he said in apology to Pat Maroon

The Bruins broadcaster apologized to Maroon face to face ahead of Thursday's game in Tampa.

Sports58 mins ago

NFL Would You Rather? Which home favorite would you rather bet?

Breaking down the NFL's two conference championship games.

Sports1 hour ago

Nick Bosa receives perfect one-word assessment from Eagles’ Jordan Mailata

The Eagles know what to expect from Nick Bosa and the 49ers' defense on Sunday in the NFC Championship Game...

Sports2 hours ago

Kyle Shanahan’s Brock Purdy anecdote sums up 49ers’ rookie philosophy

Brock Purdy is the 49ers' perfect example of how rookies should approach their first year in the NFL.

Sports2 hours ago

Statement from Steve Wilks’ lawyer is also a warning to the Cardinals on Brian Flores

The statement came swiftly from lawyer Doug Wigdor. And it should be regarded by Cardinals owner Michael Bidwill as a...

Sports3 hours ago

NFL Conference Championship Stats Notebook: One key matchup will determine the winner of 49ers-Eagles

Fantasy football analyst Matt Harmon breaks down four noteworthy numbers ahead of the NFL championship round.

Sports3 hours ago

Warren Sapp says Bears are trading Justin Fields to draft Bryce Young

How on earth would Warren Sapp know if the Chicago Bears are trading Justin Fields?

Sports4 hours ago

NBA second generation: Boozer twins, Bronny James and others carving their own paths

Yahoo Sports takes a look at 10 current high school players who come from an NBA family and how they're...

Technology Hot News

Technology1 week ago

Led by "Amazon" and "Microsoft" .. the technology giants are planning to lay off 64,000 employees

After 10 years of driving the stock market bull run, big tech companies are racing to downsize staff to adapt...

Technology1 week ago

Apple introduces MacBooks with new M2 processors

Yesterday, Tuesday, Apple unveiled MacBooks powered by the new, faster “M2 Pro” and “M2 Max” processor chips, in a surprise...

Technology1 week ago

All you need to know about the upcoming Galaxy S23 phones from Samsung

Samsung has officially announced that the (Galaxy Unpacked 2023) event will be held this year on Wednesday, February 1, which...

Technology1 week ago

FTX Exchange Announces Hacking and Stolen $415 Million in Cryptocurrency

Bankrupt American cryptocurrency firm FTX announced today, Wednesday, that $415 million in cryptocurrency has been hacked and stolen from the...

Technology1 week ago

Because of a "fraudulent tweet"… Elon Musk's trial begins

Elon Musk's trial began Tuesday in San Francisco with the selection of jury members who will have to decide whether...

Technology1 week ago

An electric spoon replaces salt and spices, but with conditions

Experts have developed an electric spoon that is able to replace spices and flavors and affect the taste buds in...

Technology2 weeks ago

The biggest dangers of using tracking devices.. so you can escape?

If you spot an unknown Bluetooth tagging device, there are ways to disable the device so it can't track your...

Technology2 weeks ago

New Twitter.. For You tab to web version

The Twitter platform announced that it will bring the new tab (For You), which launched last Tuesday for iPhones and...