All Those China Stock Bears Give SocGen More Reasons to Buy

Societe Generale SA’s Vivek Misra says bears are getting it all wrong on the Chinese stock market.

While pessimists focus on surging price-to-earnings ratios, SocGen’s Asia equity strategist says what matters most is China’s improving long-term outlook for profits and dividends. Bears fret over the slowing economy, yet Misra sees shares gaining even if growth falls to a 15-year low of 6 percent. Mainland equities will join MSCI Inc. indexes, he says, despite opponents who worry about increased state intervention.