Source:
https://scmp.com/business/china-business/article/2160668/ubs-bets-sustained-rebound-chinese-stocks-pro-growthChina Business
UBS bets on sustained rebound for Chinese stocks as pro-growth policies play out
Cyclical stocks like railway builders are expected to lead the rebound, amid a projected 14pc rise of the big caps index for 2018
UBS says Chinese stock rebound will be sustained for three months. Photo: Reuters
China’s ongoing stock rebound will probably be sustained for three months as policymakers’ recent measures to boost investment play out to stabilise growth, according to UBS Group.
Cyclical stocks, or companies whose earnings are most reliant on the economic cycles, would lead the bounce and the CSI 300 Index of Chinese big-caps would rise 14 per cent by the year end, said Gao Ting, a strategist with the biggest Swiss bank at a briefing in Shanghai on Tuesday.