Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

China Large-Cap Stocks ‘Stuck in Range,’ JPMorgan’s Mowat Says

Sept. 13 (Bloomberg) -- China’s large-capitalization stocks are “stuck in a range,” while small- and mid-caps offer “lots of opportunities,” Adrian Mowat, JPMorgan Chase & Co.’s chief Asian and emerging-market strategist, said in a Bloomberg Television interview.

“The problem for us in the equity market is that the consumer is only 11 percent of market cap, so consumer stocks in China are doing well, tend to trade at twice the market multiple. So, we’re happy to participate in that,” Mowat said. “We found that most of the market, in terms of the large-cap stocks, is less interesting. Remember what China is trying to do is boost household income as a share of GDP. The problem with that is that you have to take it from somewhere else. And where they’re taking it from is profits as a share of GDP, which particularly hits the 80 percent of the market that is state-owned enterprises.”

The Shanghai Composite Index rose 0.3 percent to 2,671 at 10:50 a.m. local time, while the Shenzhen Se Composite index climbed 0.8 percent.

To contact the editor responsible for this story: Allen Wan at awan3@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.