International financial institutions have expressed optimism in the Chinese market after the Political Bureau of the Communist Party of China Central Committee’s meeting on economic work highlighted efforts to boost the capital market and the People’s Bank of China unveiled a series of major monetary policy adjustments last week.
ANZ Group Holdings CEO Shayne Elliot said that fears about the “demise of China” as an investment destination are “massively overblown,” reported Bloomberg. Elliot, who in March announced plans to expand ANZ’s presence in China, added that the bank continues to be treated “extraordinarily well” in the country.
In an interview with CNBC, David Tepper, Appaloosa Management founder and president, said that China’s central bank has responded to the market and “exceeded expectations” with the recent announcements. Tepper said he would buy “everything” in China and highlighted the implications of the stimulus efforts on bonds, currencies and stocks.
Stephen Jen, chief executive officer of Eurizon SLJ Capital, echoed similar sentiments, saying that Chinese equities are extremely undervalued, according to Bloomberg, which cited a report Jen wrote to clients. In the report circulated Friday, Jen forecasted that a “serious rally” in Chinese stocks is “entirely possible.”
<img src='https://news.cgtn.com/news/2024-10-01/Chinese-stock-market-rally-expected-International-investors-1xliWNPKw6I/img/14d6e352162c440aae61ef785701ca1c/14d6e352162c440aae61ef785701ca1c.jpeg' alt='A display showing stock market indicators in Shanghai, China, September 30, 2024. /CFP'
On Monday, the last trading day before the seven-day National Day holiday, Chinese stocks surged with the Shanghai Composite Index up 8.06 percent, Shenzhen Index up 10.67 percent and ChiNext Index up 15.36 percent.
The market has responded quickly to the slew of measures which marked a “turning point” for the A-share markets, said Fang Dongming, head of China Global Markets at UBS.
Meanwhile, Morgan Stanley’s Chief China Economist Robin Xing said that the measures serve as a short-term stimulant, boosting foreign investor’s confidence in the Chinese market.
