China, Hong Kong shares among world’s worst performers to end 2023, down more than 10%
Shanghai: Chinese and hong kong Stock ends up as the world’s worst performing stock in 2023 equity marketsWith losses of more than 10%, however, they recorded their best week in five months.
China’s blue chip CSI 300 index has posted an unprecedented third consecutive year of decline amid the country’s faltering post-pandemic recovery and geopolitical tensions, but some see opportunities in the affected stocks.
“We turn strategically positive on China,” Jefferies said, citing Beijing’s economic stimulus, a surging yuan currency and “trough valuations” in its 2024 outlook.
On Friday, the index rose 0.5%, and was up 2.8% for the week. from hong kong Hang Seng Index The session ended flat, but a weekly gain of 4.3% was recorded.
However, the index is at the bottom of the 2023 global performance ranking, with the Hang Seng falling 14% in its fourth year of decline, and the CSI 300 falling 11%.
In contrast, the MSCI World Equity Index is set to rise by nearly 20% at the end of 2023, with markets including the United States, Japan, India and Mexico posting strong gains.
China “disappointed investors expecting a strong recovery” after COVID-19, William Wetherell, chief global economist at Cumberland Advisors, said in a note.
“The economy was affected by widespread and persistent housing and local government debt problems, the clean-up of which continues.”
Property stocks fell in 2023, with Chinese developers falling 39%. Retail sales, new energy and tourism were also the biggest losers.
Underscoring waning confidence, net foreign buying through Stock Connect this year stood at about 44 billion yuan ($6.20 billion) – the smallest since 2015 – as foreign investors pulled out in large numbers since August. Are.
But some people see deep value in bad stocks. Shanghai hedge fund manager Li Bei said in a post on Friday that investors who are underweight China may be forced to add to positions in 2024 as the market is likely to bottom.
AllianceBernstein acknowledged that China’s stocks are undervalued, and expects the country’s corporate earnings growth to overtake developed markets in 2024.
However, “while this combination is attractive, we still lack sufficient conviction to raise overweight amid geopolitical risks and secular challenges,” its strategy team led by Chief Investment Officer Alexander Chaloff wrote.
($1 = 7.0977 Chinese yuan renminbi)
China’s blue chip CSI 300 index has posted an unprecedented third consecutive year of decline amid the country’s faltering post-pandemic recovery and geopolitical tensions, but some see opportunities in the affected stocks.
“We turn strategically positive on China,” Jefferies said, citing Beijing’s economic stimulus, a surging yuan currency and “trough valuations” in its 2024 outlook.
On Friday, the index rose 0.5%, and was up 2.8% for the week. from hong kong Hang Seng Index The session ended flat, but a weekly gain of 4.3% was recorded.
However, the index is at the bottom of the 2023 global performance ranking, with the Hang Seng falling 14% in its fourth year of decline, and the CSI 300 falling 11%.
In contrast, the MSCI World Equity Index is set to rise by nearly 20% at the end of 2023, with markets including the United States, Japan, India and Mexico posting strong gains.
China “disappointed investors expecting a strong recovery” after COVID-19, William Wetherell, chief global economist at Cumberland Advisors, said in a note.
“The economy was affected by widespread and persistent housing and local government debt problems, the clean-up of which continues.”
Property stocks fell in 2023, with Chinese developers falling 39%. Retail sales, new energy and tourism were also the biggest losers.
Underscoring waning confidence, net foreign buying through Stock Connect this year stood at about 44 billion yuan ($6.20 billion) – the smallest since 2015 – as foreign investors pulled out in large numbers since August. Are.
But some people see deep value in bad stocks. Shanghai hedge fund manager Li Bei said in a post on Friday that investors who are underweight China may be forced to add to positions in 2024 as the market is likely to bottom.
AllianceBernstein acknowledged that China’s stocks are undervalued, and expects the country’s corporate earnings growth to overtake developed markets in 2024.
However, “while this combination is attractive, we still lack sufficient conviction to raise overweight amid geopolitical risks and secular challenges,” its strategy team led by Chief Investment Officer Alexander Chaloff wrote.
($1 = 7.0977 Chinese yuan renminbi)
