China stocks could pull back as investors are complacent in their policy expectations, strategist says

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Investors are factoring in easy policy ahead in China despite authorities 'explicitly' signaling a move toward normalization, warns BCA Research's Jing Sima.

SINGAPORE — Stocks in China may see a pullback as investors hoping for easy monetary policy aimed at stimulating growth may be surprised as China pushes to tighten policy, one analyst warned.

"The market now I think has priced in ... almost all good news," Jing Sima, China investment strategist at BCA Research, told CNBC's "Street Signs Asia." "They are a bit complacent about policies," she warned on Friday. "Even two weeks ago, they were talking about loosening of liquidity." Extremely easy monetary policy — typically low interest rates that make borrowing cheap and encourage spending — was adopted by many major central banks worldwide in 2020 to keep financial markets afloat It has often been cited as a reason for the blockbuster performance of major stock indexes globally last year despite the ragingThe has never really, you know, loosened monetary policy when the economy is on ...

"The has never really, you know, loosened monetary policy when the economy is on ... upward trend," she said. China reported in January that its

 

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