China equity selloff not on fundamentals, creates opportunity - JPM
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FILE PHOTO: A men wearing a mask walk at the Shanghai Stock Exchange building at the Pudong financial district in Shanghai, China, as the country is hit by an outbreak of a new coronavirus, February 3, 2020. REUTERS/Aly Song
(Reuters) - Monday's selloff in Chinese equities does not correspond with fundamentals and creates an opportunity for investors, analysts at JPMorgan said on Monday.
"We believe this is a good opportunity to add given an expected growth recovery, gradual COVID reopening, and monetary and fiscal stimulus," wrote the bank's analysts in a strategy note, adding that growth data in China was a positive surprise over the weekend.
Hong Kong stocks fell 6.4% on Monday while a Shanghai index dropped 2% after Xi Jinping's newly unveiled leadership team heightened fears that economic growth will be sacrificed for ideology-driven policies. [.SS]
(Reporting by Rodrigo Campos)
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