Some global fund managers fear government efforts to stabilise the market are too little, too late
Chinese authorities’ promise of “forceful” measures last week was their most vocal attempt yet to halt a stock market sell-off that has wiped out almost $2tn in value. For many investors at a Goldman Sachs conference in Hong Kong, that vow was too little, too late. More than 40 per cent of those surveyed while attending a session on Chinese equities held by the US bank on Wednesday said they believed the country was “uninvestable”.
However, the stock market rout has pushed valuations low enough that some Wall Street banks are calling for investors to jump back in. JPMorgan has forecast the MSCI China index — which has already dropped around 10 per cent so far this year — will finish the year at 66. That implies a rise of more than 30 per cent from the benchmark’s closing level on Friday.