Jan. 3 (Bloomberg) -- China’s stocks may give positive returns in 2012 after a “volatile” first half of the year, Daiwa Capital Markets said.
“From a market perspective, the 2012 risk/reward outlook is good,” Daiwa analysts led by Mingchun Sun wrote in a report dated today. The MSCI China Index is valued at a 33 percent discount to its long-term average, they wrote.
Should a Lehman-type crisis occur in Europe, a repeat of 2008-09 would be “likely” for China’s economy, though on a smaller scale, the analysts wrote. “Policymakers seem better prepared for such a crisis now than in 2008, making China a likely safe haven in 2012.”
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