Sectors

RBS predicts China stock rally

Date: 12 Mar 2010

Having experienced a correction since mid-January over monetary tightening concerns, Chinese stocks look set to rally as the government shifts its focus to growth instead of tackling inflation, says the Royal Bank of Scotland.

Keywords (click to search): [Royal Bank of Scotland] [China equities] [Wendy Liu]

Aaron Pan
A rally in Chinese stocks is in the offing after Beijing signalled a shift in its economic policy at the National People’s Congress (NPC) meeting last week, the Royal Bank of Scotland is predicting.

China’s equity markets have dropped since the middle of January as investors started to worry about policymakers exiting the Rmb4 trillion (US$585 billion) stimulus package and tightening monetary policy to contain asset price inflation.

At one point the MSCI China index had fallen as...

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