Fund managers see opportunity in China despite 'full' valuations

Chinese stocks can climb higher

China's equity bull run can continue despite decade-high valuations, risks of a second Covid-19 wave and political ructions with Western economies.

In early July, the Shanghai Composite hit a two-and-a-half-year high of 3,383, while the CSI 300 index - which replicates the performance of the largest 300 stocks traded on the Shanghai and Shenzhen exchanges - reached a record high 4,753 - a full 34% above its March low. The surge stemmed from a front-page editorial in the state-owned China Securities Journal, which said it expected a "healthy bull market", urging investors to look forward to the "wealth effect of the capital markets". Multi-asset managers dismiss bubble fears as gold price reaches record high A recent note from ...