Bernstein Quants Say China Momentum Stocks ‘Extremely’ Expensive
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Anyone chasing momentum in China’s stock market should head for the exit.
That’s according to Sanford C. Bernstein’s quantitative strategist Rupal Agarwal, who says a pullback in Chinese equities is about to punish traders betting on the gains to extend. Among the MSCI China Index, such stocks look “extremely expensive and crowded” and may suffer in the event of a broad downdraft she expects to play out in the current quarter.