China's Stock Market Poised for New Upswing: Experts Optimistic

The Chinese stock market is once again drawing investors' attention, particularly in light of Beijing's ongoing economic stimulus measures. According to Jeff deGraaf, CEO of Renaissance Macro Research, China's stock index could rise by an impressive 54% in the coming year, reaching the 6,000 mark. He describes the current conditions as one of the best opportunities of his 35-year career, supported by skepticism, valuations, stimulus, and a directional change. In recent weeks, Chinese stocks have experienced a roller-coaster ride after Beijing announced its latest monetary stimulus package, which included interest rate adjustments and a market-strengthening financial injection. Despite an impressive start, the rally has faded, and investors are eagerly awaiting new fiscal measures that could be announced on Saturday. According to a Bloomberg survey, it is expected that Beijing will inject an additional 2 trillion yuan, approximately 283 billion dollars, into the economy by 2025. Jeff deGraaf sees the government's response as a pursuit of self-preservation and advises investors to be cautious in China, despite economic uncertainties, and to use hedges. A report from EPFR Global, cited by Bank of America, shows that investors have put 39.1 billion dollars into Chinese funds— a record over a week until October 9. Michael Hartnett, strategist at Bank of America, reiterates that stimuli are being used to boost domestic demand. At the same time, some investment funds, such as Shenzhen Huaan Hexin Private Investment Fund Management Co., are using the current market correction as a buying opportunity, particularly in tech-heavy Hong Kong stocks. Yuan Wei, founder of the fund, sees the recent price correction as an attractive entry opportunity, as the fundamental valuations of the stocks remain favorable. Market optimism remains high; analysts, including those from Goldman Sachs, predict a further price increase of up to 20%.