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JP Morgan Removes Buy Recommendation on China

» Updated: 11 September 2024, 07:34

» Published: 05 September 2024

JP Morgan Removes Buy Recommendation on China
Photo: Ng Han Guan AP/TT

The American giant bank JP Morgan Chase & Co is removing its buy recommendation on Chinese stocks. The bank's strategists are warning of increased uncertainty due to the US presidential election in November, headwinds for China's economy, and difficulties in getting Chinese stimulus measures to work.

The JP Morgan strategists are downgrading their recommendation on Chinese stocks from "overweight" to "neutral", thereby following in the footsteps of their colleagues at the major banks UBS and Nomura, who have also downgraded their recommendations on Chinese assets in recent weeks.

An increasing number of economists are expecting China to fail to reach its growth target of 5 percent this year. The latest to revise their forecast among the heavyweights on Wall Street was Bank of America.

JP Morgan – whose economists believe in a China growth rate of 4.6 percent this year – currently sees better returns on stock investments in growth countries such as India, Mexico, Saudi Arabia, Brazil, and Indonesia.

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By TTThis article has been altered and translated by Sweden Herald

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