China has become the current "hope of the whole village" in Asia

This article is the June 19 article of Singapore's "Business Times".

Screenshot of Singapore's "Business Times" report

At present, the global stock market has plummeted, but the Chinese stock market shows outstanding toughness. This brings hope to Asian investors, so that they believe that the regional stock market will be improved in the second half of the year. During the cruel month of the world's major stock indexes into a bear market, Chinese stocks rose sharply. This month, their high power has reused the Asian benchmark index to rise, and it is expected to defeat the global level with the maximum level since October 2020. China is going to revitalize the economy -in sharp contrast to the active currency tightening policy in the United States and other countries, and it also supports the profit prospects of the region.

"Given that China's stimulus effect will be more obvious in the second half of the year, the Chinese stock market is likely to help Asia to win." Kerry Goh, chief investment officer of Kaimei Capital, said. "Economically, Asia depends more on China than other regions in the world."

Stocks in Mainland China and Hong Kong account for about 1/4 of the MSCI Asia Pacific Index. In the past month, the index has performed nearly 5 percentage points higher than the global stock index. At the same time, China's Shanghai and Shenzhen 300 Index soared 7.6%during this period, and rose from a sharp decline earlier this year.

Promoting the rise of China's stock market is loose monetary policy, partially termination of epidemic prevention and control measures, and the days of the days of strict management technology companies. Even if there is an unfavorable factor in the epidemic, most analysts still expect that the Chinese economy will increase by more than 4%this year, while the US growth rate is 2.6%. This will promote Asia, because China is the largest trading partner in most countries in the region.

The industry strategist, including Tim Mo, wrote in a report earlier this month that the United States is in the center of currency tightening, but the largest market in Asia is in its cycle. policy". It is true that Asia cannot be completely affected by the slowdown of the world's largest economy at all.

Goldman Sachs Group's strategist said that if the U.S. stock market continues to undergo pressure, the Asian stock market may be difficult to achieve positive returns, but no matter what, "Asia's outstanding situation is still strong." The analysis of the French Industrial Bank Strategic Master also shows that since 1987, the 11th bear markets of the Standard Poorot 500 Index have also fallen, but in the case of more than 50%, Asian stocks are still better than the United States.

In the second half of this year, with the steady rise of the Asian market, the performance of various countries may be different, but the average will still be better than other regions. China seems to be in the best performance, and the sound of bullishness has continued. "In the rest of this year, the Chinese stock market should make efforts in the remaining time of this year. And damaged. "

(Translated by Chen Junan)

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