Market Views: Have Chinese equities reached the bottom and set for a comeback?
The worst might be over, but we are not at the end of the tunnel just yet. Are we seeing a bumpy road upward? Wait until it’s about fundamental changes rather than a sentimental bounce, fund managers say.
Recent Chinese equities trading, both onshore and offshore, could look very sentimental – it plummeted dramatically in the week of October 24 right after the Communist Party of China unveiled its new seven-strong core leadership group, but then rallied off the cheap valuations fueled by rumours that Covid restrictions might ease.
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