Shanghai stocks are set to jump another 10 percent in wake of Chinese stimulus: Credit Suisse

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China's benchmark stock index could rise another 10 percent on the back of 'market positive' Chinese policy announcements, John Woods, chief investment officer for Asia Pacific at Credit Suisse, said Wednesday.

China's benchmark stock index could rise another 10 percent on the back of"market positive" Chinese policy announcements, John Woods, chief investment officer for Asia Pacific at Credit Suisse, said Wednesday.

In response, Li unveiled stimulus measures,including infrastructure spending and cuts in taxes and fees worth nearly 2 trillion yuan . Those included cuts in the value-added tax rate for manufacturing, transportation and construction. "Those are the sectors which our analysis suggests will benefit with an uptick in earnings growth of between 2 and 3 percent, which is meaningful, which is substantial," Woods said.

Shanghai stocks have been on a tear this year, gaining more than 22 percent through Tuesday. That came after a slump in excess of 24 percent in 2018, the worst performance in a decade, on concerns about China's slowing economy and the trade war with the United States. "But by far the biggest beneficiary will be the domestic industries in China," Woods said."And this is among the reasons why we remain overweight this market."

 

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But not today.

Dear sir from 10:30 sbicap securities trading Window not working in chhattisgarh... Koi banda trad nhi le pata rha hai..

How long can they keep providing stimulus to satisfy markets? Exact human nature that creates economic cycles. Ultimately downturn will come... Its inevitable

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