Chinese stock recovery faces US Fed and oil pressures in September, says top fund manager
Strong corporate earnings may cushion stocks, though US rate and oil risks threaten to weigh on sentiment, according to a leading asset manager
Chinese stocks are likely to trade sideways through September, as resilient earnings growth is weighed down by concerns over potential monetary policy tightening in the United States, according to a recent strategy report by China Asset Management, the country’s second-largest mutual fund firm.
A faster pace of initial public offerings in the third quarter was also expected to squeeze market liquidity, it added.
“While the rebound is still getting under way, expectations for returns should be lowered in a rangebound market environment,” the firm stated in the report, as it advised investors to navigate the sideways market by buying on dips rather than chasing rallies.