Bank of America Is Already Calling Time on China Stock Rally
- Sentiment-driven rebound unlikely to sustain itself: Cui
- State funds have been absent and would be last resort: Cui
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Don’t get too excited by the steepest rally in Chinese stocks since 2016, says Bank of America Merrill Lynch.
The Shanghai Composite Index’s two-day gain is a sentiment-driven, short-term rebound that is unlikely to be sustained, David Cui, BofAML’s head of China equity strategy, said Monday. Deep-pocketed state funds have been absent from the market, and their participation would be a last resort only if things get worse, he added, without giving specific index targets.