Economics
China’s Giant Ball of Money May Be Headed Back to Stocks
- Stock holdings to swell by up to $1.7 trillion by end-2019: MS
- China has clamped down on many popular investment channels
Chinese Investors May Return to the Stock Market
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Property, overseas investments and shadow-banking products have all been targeted by China’s campaign to curb financial risks over the past year. What’s left?
Some analysts are betting that restrictions on other popular investment channels will lure what’s often called China’s giant ball of money back into stocks, which, despite steady gains, have seen a slow take up in volumes since a spectacular boom and bust in 2015. Chinese equity holdings will swell by up to 11 trillion yuan ($1.7 trillion) in the 2 1/2 years through end-2019 amid policies to clean up the financial system, Morgan Stanley predicts.