Was July 8 The Bottom For The Chinese Stock Market?

While global investors continue to make sense out of the recent turbulence in the Chinese stock market, Deutsche Bank analyst Yuliang Chang now believes the worst of the market collapse is over. In a new report out this week, Chang explains why she feels that the Chinese market has already bottomed.

“W”-Shaped Recovery

According to Chang, Chinese equities reached their bottom on July 8 and will spend the rest of the summer trading mostly sideways. In the longer-term, Chang is expecting that the second up-leg of her forecasted “W”-shaped recovery will occur later this year when the fundamental picture improves, driving fund inflows into the Chinese market.

Chang is calling for the HSCEI to reach 14,000 by the end of this year, a 19 percent upside from current levels.

Improving Macro Environment

Chang believes…

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