Chinese economic data showing inflation easing in September from the previous month was “encouraging,” and gives the government leeway to ease monetary policies, according to JPMorgan Chase & Co.
The government will introduce more policies to boost economic growth as exports slump, Jing Ulrich, Hong Kong-based chairman of global markets for China at JPMorgan, said in a Bloomberg Television interview. The yuan will appreciate a further 2 percent against the U.S. dollar this year and 5 percent next year, she said. Ulrich favors industries such as consumer, telecom, Internet and travel. She said bank and property stocks face continued “downward pressure.”