China, Hong Kong Stocks Cut to ‘Underweight’ at JPMorgan
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China and Hong Kong stocks were cut to “underweight” from “neutral” at JPMorgan Chase & Co., which said speculation that Chinese policymakers are ending their tightening efforts is “premature.”
Asia’s largest economy is likely to increase banks’ reserve requirements by 50 basis points in the second half, analysts led by Adrian Mowat said in a report today. The People’s Bank of China lifted its deposit and lending rates effective yesterday, its fifth move since mid-October, and has boosted reserve requirements 12 times since last year.