HSBC sees opportunity in beaten down Chinese stocks

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HSBC sees opportunity in beaten down Chinese stocks with shares trading at low valuations

HSBC's Herald van der Linde sees opportunities to buy Chinese stocks "at reasonable valuations" now.

"We believe investors should be buying, actually, Chinese stocks," van der Linde, head of equity strategy for Asia-Pacific at the bank, told CNBC's "Street Signs Asia" on Tuesday. HSBC is currently "overweight" on Chinese stocks, he said. "Good stocks have been thrown out of, like they say, the baby's been thrown away with the … bathwater," the strategist said, adding that these shares are now trading at "very low multiples."

The Chinese markets are also relatively inexpensive as compared with peers in the U.S. and India, van der Linde said. Investors have been cautious toward Chinese stocks for most of this year due to a range of factors such as Beijing's ongoing regulatory crackdown as well as fears of contagion over debt-laden developerWhile major indexes in the U.S. as well as India have surged to record highs in recent weeks, China's CSI 300 index, which tracks the largest mainland-listed stocks, has fallen nearly 5% in 2021 as of its Tuesday close.

 

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My link my work

Suckers listen to HSBC, which is thoroughly CCP tamed.

Gee, a bank in Communist territory sees opportunity in Communist China stocks. What a surprise.

good luck

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