CICC's 10 Forecasts for 2023; H Shrs Expected to Realize Double-digit Rev. This YrCICC issued a report, laying out ten forecasts for 2023:
1) China is hopefully to realize advanced recovery among world's economies this year in wake of escalating recession pressure on the US;
2) Both A-shares and H-shares are expected to achieve significant positive returns this year, with H-shares outshining A-shares;
3) China's inflation may face staged pressure under post-epidemic demand revival;
4) China should end the monetary easing, which will lead to rising median interest rate and stronger major asset stocks than bonds;
5) Real estate sales area will rebound and swing to positive growth, and housing prices are partially under upside pressure;
6) China's exports may still be subdued under the US setback and active destocking cycle;
7) Pan-consumer industry may be a key area of excess returns this year with gradually fading epidemic impact;
8) Internet and pharmaceutical industries are projected to hail a reversal this year;
9) Funding of A-shares and H-shares will ameliorate as a whole on the back of overseas fund comeback; and
10) Inflection point of the USD trend may not arrive until 2H23, and the RMB may rocket amid volatility.
CICC attributed the bleak performance of China market, especially H shares, last year to waning domestic fundamentals, policy austerity of the US Fed and geopolitical factors.
However, it forecast both A-shares and H-shares to realize revenues in around double-digits this year, in light of marginal improvement in some factors and current valuations which still have mid-to-long-term attractiveness.
Source: AAStocks Financial News
http://www.aastocks.com/en/stocks/news/ ... t-news/HK6
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