In the second instalment of the two-part series on the outlook for the Hong Kong and mainland Chinese stock markets, Zhang Shidong and Yulu Ao look at the catalysts that could underpin the rally. Read part one here.
When Chinese stocks hit a 10-year high this week, Jian Shi Cortesi saw it as a sign that the rally could continue as overseas investors returned to the nation’s onshore and offshore equities, which are worth a combined US$20 trillion.
The Switzerland-based investment director at GAM Investments expects a further uptick in stocks, which will be underpinned by domestic investors’ rotation out of fixed-income products, whose yields have fallen to record lows, and Beijing’s push for technological innovation.
“Globally, almost all major stock markets are trading at or near historical highs [and] Chinese equities – both A and H – have much room to catch up,” said Cortesi, referring to mainland traded A shares…
