China Hedge Fund Says Most ‘Violent’ Phase of Deleveraging Over
- China’s stock, bond markets poised to rally, Chongyang says
- President Wang is more positive, ‘especially’ on stocks
One of China’s top hedge fund managers says the most violent phase of China’s deleveraging campaign is over, leaving domestic stock and bond markets poised for a rally. Chongyang Investment Management President Wang Qing says Beijing’s new crackdown on companies making overseas acquisitions has been blunt, but effective. (Source: Bloomberg)
Shanghai Chongyang Investment Management Co., whose oldest China hedge fund has returned almost three times as much as equity benchmarks, said the nation’s stock and bond markets are poised to rally as the “worst” part of a deleveraging process appears over.
“As far as market impact is concerned, the most violent phase of this campaign-style deleveraging is over,” Chongyang President Wang Qing said in an interview with Bloomberg TV in his office atop a skyscraper overlooking Shanghai’s financial district. He is “more positive” on the outlook for bonds and “especially the stock market.”