China stimulus trade to pick up in stocks by late-Nov, JPM says

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China stimulus trade to pick up in stocks by late-Nov, JPM says

Investing.com-- JPMorgan analysts said buying in Chinese stocks centered around Beijing’s plan for more stimulus was likely to resume later in November as the country outlines plans for more fiscal support.

But JPM said that signals from the government suggested such targeted measures were on the way, along with “likely supports to technological development and social security.” President-elect Donald Trump has vowed to impose a 60% import tariff on all Chinese goods, which JPM expects to batter Chinese gross domestic product growth by 1.3 percentage points. JPM had trimmed its 2025 GDP forecast for China to 3.9% from 4.6%.

JPM noted that Chinese earnings for the third quarter had so far held firm, bucking a seasonal trend for weakness. The brokerage also noted that property markets in tier-1 cities had started to improve.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors.

 

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