The recent pummeling in China’s markets has made their valuations look attractive relative to almost anything, but bulls may find they need strong nerves to stay the course in a country that repeatedly shocked global investors this year.
The rationale for why much of the sell side is turning more confident on China right now is that things can’t get much worse. Analysts and investors are betting prices already reflect a slowdown in the property market, weaker growth and President Xi Jinping’s campaign to shake up private enterprise.
