JPMorgan Chase: China's stock market reversal is just at the end of January!
JP Morgan's report pointed out that although Chinese stocks may be affected by U.S. policies, a strong dollar, and geopolitical tensions in the short term, a market reversal is expected around the end of January. After the reversal, factors such as consumption during the Lunar New Year, macroeconomic data, corporate earnings, and policy stimulus will influence stock market performance. Increased household stock allocation, easing U.S.-China relations, and potential stimulus policies are the three major upside risks that have not yet materialized for 2025
JP Morgan's report pointed out that although Chinese stocks may continue to be under pressure in the short term due to factors such as U.S. policies, a strong dollar, and geopolitical tensions, a market reversal is expected around the end of January as the clarity of Trump's policies towards China and China's responses emerge.
After the market reversal, factors such as Lunar New Year (LNY) consumption, macroeconomic data, corporate earnings, and policy stimulus will affect stock market performance. The report noted that a significant increase in household stock allocation, easing U.S.-China relations, and the potential introduction of larger-scale income and consumption stimulus policies are the three major upside risks that have not yet materialized for 2025.
