Chinese version of 'M7'? Comparable to major US high-tech companies! How long will the bullish market continue?
The Hang Seng China Enterprises Index in Hong Kong stocks has risen more than 30% in the past month, achieving the best performance among over 90 stock indices tracked by Bloomberg worldwide.
Roundhill Investments announced a new ETF that correlates with the performance of large Chinese companies as the Chinese stock market surges. $Roundhill China Dragons ETF (DRAG.US)$with constituents such as $Tencent (TCEHY.US)$、 $PDD Holdings (PDD.US)$、 $Alibaba (BABA.US)$、 $Meituan ADR (MPNGY.US)$、 $BYD Company ADR (BYDDY.US)$、 $Xiaomi Corp. Unsponsored ADR Class B (XIACY.US)$、 $JD.com (JD.US)$、 $Baidu (BIDU.US)$、 $NetEase (NTES.US)$が含まれる。
Roundhill's CEO Dave Mazza stated that these tech giants demonstrate a competitive advantage with economies of scale, solid fundamentals, and significantly greater growth potential than their competitors. In addition, Roundhill has also announced an ETF linked to the US 'M7' index in the past. $Roundhill Magnificent Seven ETF (MAGS.US)$Also announced.
On October 5th, Goldman Sachs released a latest report on the rating of the Chinese stock market.Raised the target stock price of MSCI China from 66 to 84 and the target stock price of CSI300 from 4,000 to 4,600, while "overweight".Goldman sees the possibility of further increase in the Chinese stock market, estimating about 15-20% upside potential.
Macro issues continue to be challenging, as the scale and details of fiscal policy have not yet been clarified, there is not enough evidence to assert the beginning of a bullish market. However, there are sufficient reasons to believe that the stock market will rise further.①Valuations remain below the median of 11.3 times even after recovering from a low level of 8.4 times, staying 0.4 standard deviations below the 5-year average of 12.1 times. If economic policies continue, valuations could further recover.②There is a high probability of reducing tail risks through strong policies, which could reduce the ICOE.
Raised the target stock price of MSCI China from 66 to 84 and the target stock price of CSI300 from 4,000 to 4,600, while "overweight".
Goldman sees the possibility of further increase in the Chinese stock market, estimating about 15-20% upside potential.
Macro issues continue to be challenging, as the scale and details of fiscal policy have not yet been clarified, there is not enough evidence to assert the beginning of a bullish market. However, there are sufficient reasons to believe that the stock market will rise further.
If the economy improves with stimulus measures, there is a possibility that the earnings growth rate will also improve.
Investment trusts are underweight in Chinese assets.
Goldman Sachs also maintains 'overweight' ratings on IT, entertainment, semiconductors, general consumer goods, and essentials against the backdrop of financial easing policies, structural economic growth (such as artificial intelligence and China-specific consumption trends).
Raymond Ma, the Chief Investment Officer for China at Invesco, emphasized the importance of fundamentals.
While market sentiment may be overshooting in the short term, it is likely to eventually revert to fundamentals. In this current uptrend, some stocks are becoming overvalued.
J.P. Morgan's Chief Market Strategist for the Asia-Pacific region, Tai Hui, also adopts a cautious stance, stating that whether additional easing policies are possible is key.
Additional easing policies are needed to enhance economic growth and confidence. While the policies announced so far will help smoothen the deleveraging process, there is still a need to continue repairing balance sheets.
This article uses automatic translation in part.
Source: moomoo, Bloomberg, Roundhill
- Mooomoo News Citron
Source: moomoo, Bloomberg, Roundhill
- Mooomoo News Citron
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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恋コイ : The last struggle?! Has the Chinese Communist Party taken a gamble as a last resort? It will be interesting to see the developments tomorrow. It's not a laughing matter as it may have an impact on Japan and could even lead to the beginning of a global recession. Considering the possibilities, I have sold off most of my stocks today. Well, the Nikkei will probably drop tomorrow. I'll wait and see.
バケツ3杯 : Additional easing measures... and so on...![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
？
I wonder if there are any.