LONDON : Any veteran investor will tell you that financial markets overshoot when trouble hits, but what if that market is the world's second-largest economy and the government has decided the rules of the game have changed?
It could spring back of course, but there's the rub. Many analysts are convinced things will settle, but only the Beijing ruling elite know if and when that might be."This will weigh heavily on the outlook for profits, valuations and investor sentiment in China."Morgan Stanley estimates MSCI China, which has seen one of its biggest lags on record versus world stocks this year, now trades at 13.
"The process of earnings downgrades and ratings downgrades has barely started," said Janus Henderson's O'Connor. "It's important to distinguish between what is really volatility or noise and what is here to stay," said Michael Bolliger, chief investment officer, emerging markets, at UBS Global Wealth Management.
Widening spread differentials have historically offered an attractive entry point, said Michele Barlow, SSGA's Asia-Pacific head of investment strategy and research. But there's still caution.
Finance Finance Latest News, Finance Finance Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »