Surging China Volatility Means ‘Stay Put,’ CICC Says

China stocks volatility jumped to the highest in six months, spurring China International Capital Corp. to recommend that investors refrain from buying equities as the government intensifies measures to contain inflation.

“Investors should stay put,” Hao Hong, a Beijing-based global strategist at CICC, the top-ranked brokerage for China research in Asiamoney’s annual survey, wrote in a report. “Fundamental volatility hasn’t been reflected yet. Inflation risks haven’t been priced in.”