OSAKA, Japan, November 5, 2018
OSAKA, Japan, November 5, 2018 /PRNewswire/ --
Chinese shares are now going to benefit a great amount as the country's central bank has increased measures to enable growth, within recent weeks sell-offs occurred in the market and it has now become apparent that there are some good investment opportunities arising according to Chiba Taiko Partners.
The Chinese Central Bank has had previous attempts when it comes to monetary tightening, which had shown a steady pace of returns for its equity markets.
However, analysts at Chiba Taiko Partners have suggested that even with the ongoing trade tensions, Chinese equities are now poised for an extremely bullish market throughout the year.
"Chinese equities on the MCHI had lost about 27 percent which happened very fast, this was due to the market over-reacting to headlines about the trade war."
"We can now see after the smoke has cleared that there are a lot of companies which are undervalued making them a prime acquisition," commented a research analysts at Chiba Taiko Partners.
"China's main consumer price of inflation, which does not include food and energy prices stand at 1.7 percent, when the figure is below the two percent year-on-year we see tightening conditions," added Chiba Taiko Partners.
Jack Edmonds, Associate Director at Japanese based trading company Chiba Taiko Partners has commented: "There are a lot of quality technology based stock companies that are at extremely attractive prices, companies that would be trading 30- to 50- times earnings are now around 20; Its easy to forecast a big rally in the coming weeks on these basic fundamentals."
Chinese equities are doing something that hasn't been done in recent years, which is to outperform their rival counterparts in the U.S.
The last two weeks the Shanghai Composite has surged almost five percent and even racked up its longest four-day streak that has not been seen since February this year.
With market experts quoting a few more months of more volatility and potentially a weaker start going into 2019, U.S. stocks could drag down Asian equities.
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