With the volatility correction in 2023, foreign institutions have positive expectations for the Chinese market in 2024. Many institutions believe that policy-driven is crucial to the medium- and long-term development of China's economy, especially in new economic fields such as new energy and science and technology. Foreign institutions are generally optimistic about the risk premium and ** of Chinese assets, and believe that these factors will form an effective support for the A** market.
Bridgewater**, one of the world's top hedgers**, continues to invest in the Chinese market and focuses on the strategic choices of Chinese policymakers in achieving economic balance. The ** stressed that China still has a lot of room for maneuver in fiscal and monetary policies, which will help promote the economic recovery.
Value Partners expects the market to gradually recover as policies are further relaxed, especially in the real estate sector. A weaker dollar and accommodative financial conditions will support the market, with earnings bottoming out expected in the first quarter of 2024.
Financial institutions such as UBS and HSBC are also optimistic about China's economy, expecting the property market to gradually stabilize and boost household confidence, which in turn will drive continued improvement in consumption. Fiscal support will be more visible and provide strong support for economic growth.
In terms of investment strategy, most foreign institutions recommend investors to adopt a balanced layout strategy. On the one hand, pay attention to high-dividend varieties with certainty, such as energy, utilities, etc.; On the other hand, we should pay attention to Chinese overseas enterprises with global competitive advantages, as well as the new cycle demand brought by emerging technology products.
In addition, for the A** market, foreign institutions said that the valuation of A-shares is currently very attractive. Especially in the gradual recovery of the economy, value stocks with low valuations may outperform. The sustainability of high dividends and the abundance of cash flow are key considerations.
Overall, foreign institutions maintain confidence in the Chinese market in 2024, and it is expected that economic growth will gradually shift to a high-quality development stage dominated by new drivers. With the gradual adjustment of policies and the improvement of market sentiment, the A** field is expected to usher in a new round of growth opportunities.
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