Alert: Chinese Stocks May Post Further Decline on Policy Tightening, Allianz Says
By Daniel at 2 February, 2010, 1:26 am
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Chinese stocks, the worst performers among the world’s largest equity markets, may retreat further amid increased concern of policy tightening, according to Allianz Investment Management.
The nation’s economic growth will probably slow in the second half, along with gains in property prices, said Nikhil Srinivasan, who oversees about $30 billion of assets as chief investment officer for Asia and the Middle East at Allianz. The benchmark Shanghai Composite Index may be “range bound” at between 2,700 and 3,300 for the year, he said.
The index “hasn’t really gone anywhere in months; in fact it’s now come off a bit,” he said today in a Bloomberg Television interview in Singapore. “My sense is that it’ll probably continue to come off. Chinese stocks are not a strong buy” yet, he said.
The Shanghai Composite dropped as much as 23 percent from its Aug. 4 peak before staging 18 percent rebound in the fourth quarter. The gauge has declined 9.3 percent this year after the central bank instructed lenders to set aside more deposits as reserves.
http://www.bloomberg.com/apps/news?pid=20601057&sid=a.PKBu0mw8sU
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