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China Goes From Asia’s Stock Nemesis to Hope as Fed Hikes Loom

  • Deutsche Bank, Jefferies join growing list of China bulls
  • Policy divergence between Fed and PBOC key reason for optimism

It wasn’t long ago that investors blamed China’s performance for the poor showing of Asian stocks versus global peers. Now a potential rebound in the nation’s equities is boosting optimism for the whole region to do better in 2022.

While imminent rate hikes from the Federal Reserve hammer shares around the world, a shift to monetary support by the People’s Bank of China is seen boosting markets in Hong Kong and on the mainland. Jefferies Financial Group Inc. and Deutsche Bank AG have just joined Goldman Sachs Group Inc. and HSBC Holdings Plc in turning bullish on China equities.