Exclusive | ‘The worst seems over’ for ‘cheap’ and ‘reasonably attractive’ Chinese stocks: EFG Asset Management
- ‘The worst is over for China, and a lot of negative news has already been priced in’, EFG Asset Management’s deputy CIO says
- CSRC measures announced in April have changed market sentiment from very negative to positive, he says
Opportunities abound in China’s stock markets, the world’s second biggest, where valuations are attractive after a long period of underperformance, a senior official at Zurich-based EFG Asset Management said after his fund raised its exposure to Chinese shares.
In recent weeks, China has issued an unprecedented set of policy guidelines to push for transparency, security, risk-management and vibrancy in the country’s US$9 trillion stock market, as Beijing works towards its goal of becoming a financial superpower.
“The worst seems over for China, and a lot of negative news has already been priced in. One of the constraints on the Chinese market is the property sector, but that risk is well recognised,” deputy CIO and global head of research Daniel Murray said in an exclusive interview with the Post.
“The regulator is trying to encourage greater connect flows, which is helpful. The change is symbolic but it has been enough to change market sentiment from very negative to positive,” Murray said.
The China Securities Regulatory Commission (CSRC), the country’s securities watchdog, unveiled five measures to help halt a market slump and revive confidence in the nation’s capital markets.
