Bloomberg News

Chinese Stocks to Rally as Investors Capitulate, CICC Says

October 16, 2011

Oct. 17 (Bloomberg) -- Chinese stocks will extend recent rallies as inflation may have peaked and excessive pessimism and capitulation may signal a bottom for equity markets, according to China International Capital Corp.

The nation’s slumping money supply growth figure is an “incomplete measure” given the “continued disintermediation” of the banking system, Hao Hong, CICC’s Beijing-based global equity strategist, said in a report to clients. “If we include the growth in financial management products, inter-bank deposits, non-financial companies’ reserve deposits, and forex deposits in the calculation of monetary aggregate, money supply growth has indeed been well over 20 percent in recent months.” M2 rose 13 percent last month, the least in almost a decade.

To contact the editor responsible for this story: Allen Wan at awan3@bloomberg.net


Race, Class, and the Future of Ferguson
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus