JPMorgan Says Buy Chinese Stocks for 20% Advance Within Weeks

Chinese stocks will probably rally as much as 20 percent as gauges of economic growth stabilize and valuations rise from historic lows, JPMorgan Chase & Co. said.

“We recommend a trading buy of China equities, based on seasonality and all-time low valuations,” Michael Yu, a strategist at JPMorgan in Hong Kong, wrote in a report dated yesterday. “We expect a 15-20% market rebound in the coming weeks, once growth stabilizes due to seasonality and the market’s focus switches to structural reforms.”