(Reuters) – Monday’s selloff in Chinese equities does not correspond with fundamentals and creates an opportunity for investors, analysts at JPMorgan said on Monday.
“We believe this is a good opportunity to add given an expected growth recovery, gradual COVID reopening, and monetary and fiscal stimulus,” wrote the bank’s analysts in a strategy note, adding that growth data in China was a positive surprise over the weekend.
Hong Kong stocks fell 6.4% on Monday while a Shanghai index dropped 2% after Xi Jinping’s newly unveiled leadership team heightened fears that economic growth will be sacrificed for ideology-driven policies. [.SS]
(Reporting by Rodrigo Campos)