JPM stated that after five years of adjustment, Chinas property market may be at a turning point, as the recovery in Hong Kongs property market is spreading to major mainland cities. Meanwhile, the wealth effect brought by the rebound in the Chinese equity market is also helping to improve housing demand, which would support Chinese equities in outperforming other emerging markets.The MSCI China Index has risen nearly 4% over the past month, almost recouping most of the losses following the outbreak of the Iran war. However, it is still down 2.5% year to date, lagging behind the 15% gain in the MSCI Emerging Markets Index.Related NewsLuckin Coffee (LKNCY.US) to Launch Bottled Ready-to-Drink Coffee in Late Apr Priced at RMB6-7, Lower Than StarbucksJPM added that, besides the recovery in the property market, there are many other positive catalysts for Chinese equities. These include advances in robotics technology, biotechnology innovation and AI applications. At the same time, government policies aimed at enhancing shareholder returns and ending price wars will also benefit the stock market. (mn/j)
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