Wall Street Experts Interpret China'S A Share Market

In the past 2014, China's A shares led the world in nearly 53% of the year.

In 2015, can A shares go up? Li Xiaoxi, managing director and fund manager of American trust global stock limited, told reporters that A shares will continue to rise in 2015, supported by four factors.

First, the Shanghai and Shenzhen 300 index has a low valuation level.

Li Xiaoxi said that the current Shanghai Shanghai 300 index's dynamic P / E is about 14.4 times, and the S & P 500 index is 17.4 times.

Even after the current rally, the price earnings ratio of blue chips such as banks and utilities is still much lower than that of the US stock market, and the income growth rate of Chinese enterprises is much higher than that of the US counterparts.

Secondly, from the whole world

Look, a stable RMB will enhance the attractiveness of China's A shares.

Under the US withdrawal from the quantitative easing policy (QE) and the expected increase in interest rates, apart from the renminbi, the major currencies of the world are mostly in a state of depreciation against the US dollar.

For a large number of investment funds in the world,

There are not many investment opportunities. From the perspective of avoiding exchange rate risk, whether the currency value is stable will become an important reference index for the orientation of international investment funds.

Third, China

Hopefully it will continue to relax.

Li Xiaoxi believes that China is likely to continue to loosen money this year, which is a good thing for high debt enterprises such as real estate, and the cost of corporate financing will be reduced.

For banks, although interest income will decrease, the risk of bad debts will be reduced due to the decrease of corporate bankruptcy risk.

In addition, loose monetary policy is also conducive to increasing capital flows to the stock market.

Fourth, benefit from low oil prices and other factors will enhance corporate profitability.

International oil prices fell nearly 50% in 2014. From the perspective of supply and demand, low oil prices in 2015 are expected to continue.

The fall in prices of many commodities, including oil, is a good thing for the Chinese economy, and to some extent equivalent to tax cuts for enterprises, which is conducive to improving the profitability of enterprises.

The enhancement of corporate profitability is the fundamental factor driving the rise of the stock market.

For the US stock market that has been rising for 6 years, Li Xiaoxi believes that the Fed's potential interest rate risk will bring some pressure to the market in 2015, but the strong dollar, sustained economic recovery, and low oil price and low inflation will be enough to offset the adverse effects of raising interest rates, and the US stock market is expected to achieve a seven consecutive rise.

Li Xiaoxi said that in the long run, China's A shares should acquire a long bull market with a time span of 6 years, such as US stocks. We need to continue to deepen reform and further integrate with the world in information disclosure, combating insider trading, strengthening market supervision and improving corporate governance structure.

Xinan global stock limited is one of the top 500 companies in the world, and currently manages about $80 billion of global equity funds.