Chinese Top Analyst Predicts Better Stock Prices in 2019
Fund manager Shi Xingtao of HSBC Jintrust is at it again but this time, his prediction of stock prices is more optimistic compared to last year's foresight.
Early in 2018, Shi predicted that there will be little to no progress in Chinese stocks for the year and while his foresight did take place, the Shanghai-based analyst has high hopes for 2019. In his prediction, Shi mentioned the potential of midstream manufacturing companies and growth stock industries.
According to the South China Morning Post, Shi said that 2019 will provide an improved stock price range for Chinese equities. He explained that this year's lower stock valuations may attract potential investors, bringing in profit for markets as early as the first six months. "2019 will have better opportunities than 2018," he predicted. It has yet to be seen if Shi's latest stock market forecast will work in favor of hopeful industries.
Shi stressed that economic growth will most likely be felt in the second half of 2019. While Shi made a correct prediction last year, his 2019 foresight comes after the World Bank said the global market will slow down its growth this year. The announcement was made Tuesday before the China-U.S. trade talks were extended due to positive progress.
The trade war between China and the U.S. has stirred up the international market as investors and analysts alike expressed worries early on. Despite the apparent weariness of various industries following the tariff truce agreed on by Presidents Xi Jinping and Donald Trump, good news emerged shortly after the trade discussions concluded.
Bloomberg noted that global stocks rose, led by the S&P 500 Index, which soared to its highest place yet for the past couple of weeks. Multiple outlets have confirmed the news, adding that this stock hike may be attributed to the progress that China and the U.S. have made this week.
In December's face-to-face meeting between Xi and Trump, plans to strike an amicable deal didn't materialize. This led to a tariff strike that will end in March. The U.S. president has stated previously that if no agreement is made at the end of the truce, his country will add 25 percent of taxes on $250 billion Chinese goods.
Meanwhile, Shi and other finance and economy enthusiasts are hoping for a more solid result after China and U.S. agreed to communicate further on the main issues that the trade war holds.