China’s car, internet and property sectors to rebound in second half on back of regulatory easing, stimulus measures, Credit Suisse says
- Credit Suisse says China’s car, internet and property industries rank top of its list of sectors expected to benefit from government stimulus
- That reflects the current pace of recovery in those industries, as China braces for its lowest quarterly growth rate in more than two years this week
“We expect a diverging outlook for sectors in the second half of the year and believe investors should focus on reopening, policy stimulus and regulatory easing as key factors to gauge relative attractiveness,” Huang told the South China Morning Post.
In the latest issue of the Credit Suisse China Market Strategy report, Huang wrote that the country’s car, internet and property industries rank atop a list of sectors expected to benefit the most from the government’s aggressive fiscal and monetary policies, improved consumption and property policies, and market stabilisation efforts.
By contrast, nonbank financial services, energy, healthcare and the condiment sector were ranked lowest on the report’s mainland market strategy scale, which looks into three criteria to assess future performance: China’s reopening, stimulus measures and regulatory easing.