Mixed views on Chinese stocks
LONDON / SHANGHAI - China's biggest investment bank is turning "cautious" on the country's stocks, just as six of its overseas rivals and the manager of the largest mutual fund say it's time to buy.
China International Capital Corp (CICC) predicted slowing economic and earnings growth will limit equity gains after the Hang Seng China Enterprises Index rose 7.1 percent this year, the best advance among major Asian indices. The top-ranked provider of China research in Asiamoney's survey recommends "defensive" companies including drugmakers and consumer staples producers.
"We're turning cautious," Hao Hong, the global equity strategist at CICC, said in an April 13 interview in Shanghai. "Economic growth is going to slow down in the coming months."
