Chinese stocks foment recovery as JPMorgan says buy amid elevated bets among short-sellers
- Short bets against top stocks in Hong Kong surged on Monday and remained elevated despite more than a 35 per cent drop in the Hang Seng in 2022
- JPMorgan says the latest sell-off is ‘disconnected from fundamentals’ and presents opportunity for investors to accumulate
The Hang Seng Index slumped as much as 1.5 per cent below the 15,000-level, before ending with a 0.1 per cent loss at the close of trading on Tuesday. The Tech Index surged 3 per cent. This followed a sell-off on Monday when the city’s benchmark index crashed 6.4 per cent, the most since the 2008 global financial crisis.
The slump on Monday was “disconnected from fundamentals”, JPMorgan Chase’s market strategists led by Marko Kolanovic said in a note published on the day. “We believe this is a good opportunity to add, given an expected growth recovery, gradual Covid reopening, and monetary and fiscal stimulus.”
02:03
China’s 20th party congress concludes with bigger than expected leadership reshuffle
China’s bank regulator issued a statement to affirm its commitment to preserve financial stability in the capital markets, in keeping with the spirit of the Communist Party’s recent congress.
