FAQs
One-year forward multiples for the CSI300 and MSCI China indices stand at 11.6x and 9.6x, well below their historical averages. Earnings are on path to recovery for the CSI300 (Goldman Sachs' top-down estimate being 9% / 11%) and MSCI China Index (8% / 10%) for 2024 and 2025 respectively, in local currency terms.
Is it a good time to invest in Chinese stocks? ›
Chinese Stocks Have Low Expectations
Instead, investors should focus on how earnings are doing in relation to estimates. Because Chinese stocks have been beaten down for so long, the earnings bar is low. BABA's e-commerce cousin JD.Com ( JD ), is a wonderful example of this trend.
What is the prediction for the Chinese stock market? ›
The China Shanghai Composite Stock Market Index is expected to trade at 2822.60 points by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 2764.62 in 12 months time.
Is it safe to invest in Chinese stocks? ›
Chinese stocks present some unusual risks, so it's important to understand them. For example, many Chinese companies trading on U.S. exchanges have a complex ownership structure, using what are called variable interest entities (VIEs). This structure poses a significant risk to investors (more below).
What is the market outlook for China in 2024? ›
Key points. Key points: China's 2024 Q1 GDP reached 5.3%, higher than the consensus and 2023 reading 5.2%, making our 4.6% 2024 forecast easy to achieve which is subject to upside bias. However, the economic structure is significantly unbalanced, with the supply side much stronger than the demand side.
Why are Chinese stocks not doing well? ›
“Domestic policy trends and geopolitical risks may continue to pressure the multiples of Chinese equities structurally.” Earnings per share for the MSCI China Index fell 4.5% from the year earlier in the second quarter, its worst in five quarters, according to data from Bloomberg Intelligence.
What is the best Chinese stock to buy right now? ›
These Chinese stocks currently have a "Strong Buy" analyst rating consensus: Alibaba - Strong Buy, based on 16 analyst ratings, 13 Buy, 3 Hold, and 0 Sell. JD - Strong Buy, based on 12 analyst ratings, 9 Buy, 3 Hold, and 0 Sell. NetEase - Strong Buy, based on 9 analyst ratings, 7 Buy, 2 Hold, and 0 Sell.
Is China a good place to invest right now? ›
Is China a Good Place to Invest? That depends on the type of investor involved. There's no doubt that the potential is huge. China is home to about one-fifth of the world's population, and its economy is massive and keeps growing at a fast pace.
What is the outlook for investing in China? ›
China has set a goal for full-year 2024 growth “around 5%.” We continue to foresee China growing by 5.1% for the full year, though supply and demand that remain out of balance could challenge that growth's sustainability.
What is the future of Chinese market? ›
AMNC China 2024 - China Economic Outlook - Original
With its announced growth target of around 5%, China is forecast to be the single largest contributor to global growth in 2024, yet much attention is being paid to the drivers of growth.
Chinese stocks remain undervalued, which could mean attractive entry points for investors and traders.
What is the average return of Chinese stocks? ›
Average returns
| Period | Average annualised return | Total return |
|---|
| Last year | -10.6% | -10.6% |
| Last 5 years | -3.7% | -17.2% |
| Last 10 years | 2.8% | 31.8% |
| Last 20 years | 8.0% | 363.5% |
While China's stocks have bounced higher since their multi-year low on January 22, with the MSCI China Index rising 13% through March 21, 2024, sentiment remains pessimistic. China's stocks are flat so far in 2024 and valuations are in line with 20-year lows, as you can see in the chart below.
Is it a good time to invest in the China market? ›
It remains the world's second-largest economy; it clocked a better-than-expected GDP growth in the first quarter of 2024; its company earnings, especially in the industrials, utilities and IT, are expected to rebound, according to Goldman Sachs; and its global share of manufacturing may be higher (at 38 per cent) than ...
What is the best way to invest in Chinese stocks? ›
The easiest way to invest in the whole Chinese stock market is to invest in a broad market index. This can be done at low cost by using ETFs. On the Chinese stock market you'll find 12 indices which are tracked by ETFs. The speciality of China are the three categories of Chinese stocks: A-stocks, B-stocks and H-stocks.
Will the Chinese economy recover? ›
China confident of 5% growth in 2024
Premier Li Qiang said the Chinese economy had sustained "the momentum of recovery" since the start of the year.
Is China still a good investment? ›
Growth in the 21st century will likely belong to China, just as growth in the 20th century belonged to the United States. 4 That growth will likely create trillions of dollars in economic output in the near future, which is why many people continue to consider investment opportunities in China.
How long will it take for the stock market to recover? ›
The average time to recovery from a 10%-20% correction is eight months. If a recession occurs, markets typically fall by more and take longer to recover. The average decline during the more-mild recessions of 1957, 1960, 1980, 1981, and 1991 is nearly 20%.
Why is the Chinese market falling? ›
The collapse of the Chinese stock market has dealt a severe blow to foreign institutional investors who considered China a key investment hub. Real estate crisis, slow growth, deflation and demographic headwinds have worsened the outlook of the Chinese market.
