China Stocks Cut by JPMorgan as Banks Seen Falling on Inflation

JPMorgan Chase & Co. advised cutting Chinese stock holdings and betting against the nation’s biggest banks as economic growth slows and inflation quickens.

The largest U.S. lender by assets downgraded China to underweight and recommended bearish derivatives tied to the country’s four biggest banks, Adrian Mowat, JPMorgan’s chief Asia and emerging-market strategist, wrote in a report today. Mowat had a neutral position on China in a Feb. 20 note.