China’s Stocks Poised to Extend Drop on Profit, Baer Says
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Chinese stocks are poised to extend their slump as the slowing economy hurts earnings, according to Bank Julius Baer & Co., which has about $286 billion in client assets worldwide.
Chinese equities will probably retreat unless there is “significant” easing of monetary policy, Alan Lam, a Hong Kong-based analyst at Julius Baer, said by phone yesterday. His comments came after the Shanghai Composite Index fell 2.7 percent, the most in four months, as Societe Generale SA said Chinese corporate profits won’t grow at all this year. The gauge has gained 3.9 percent this year, headed for the biggest quarterly gain in four.