Chinese stocks may be poised for a rebound over the next one to two months as the economic recovery picks up in the third quarter, according to analysts.
Analysts from JP Morgan believe companies most likely to lead the recovery will be those that benefit from fixed-asset investment. In particular, the analyst team likes the look of Changsha Zoomlion Heavy Industry Science & Technology Development, Weichai Power, China National Building Material, and Anhui Conch Cement. The same team predicts the economy may grow more than 8.5% in the third quarter, from 7.8% in the previous three months. “The China market might have reached the maximum stress point. China’s sequential economic growth appears to have troughed in the second quarter.” ...
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