China Stock Index May Surpass 2009 High, Fortis Says (Update1) By Liza Lin
Sept. 14 (Bloomberg) -- China’s benchmark stock index may surpass this year’s highs as private consumption and investment boost
demand for health-care services and real estate, Fortis Haitong Investment Management Co. said.
The Shanghai Composite Index, which doubled from November to 3,471.44 on Aug. 4,
may rise to as much as 3,600 by the end of the year, said Liu Hong, Shanghai-based fund manager at Fortis Haitong, which oversees $6.4 billion in assets. The gauge rose 2.2 percent to 2,989.79 on Sept. 11, a three-week high.
“Our strategy over the past month has been to switch into domestic related sectors,†Liu said in a phone interview today.
“Considering the resilience of earnings and potential for improvement, we think the valuation is supportive.†China’s industrial production rose at a faster pace than forecast in August and new lending unexpectedly climbed, indicating growth in the world’s third-biggest economy is likely to accelerate. Output at the nation’s factories gained 12.3 percent from a year earlier, the most since August 2008, the statistics bureau said last week in Beijing.
The latest target is higher than Fortis Haitong’s forecast on March 2 for the Shanghai Composite to rise to 2,500 by the end of 2009. The measure exceeded that estimate a month later.
Liu said he likes
real estate companies with land holdings and “visible earnings†for the next year, declining to name individual stocks.
“China clearly has taken a V-shaped recovery but the footing is still not very solid,†Fortis Haitong’s Liu said. “The government will continue with accommodating monetary policy, but
keep a close eye on inflation.†http://www.bloomberg.com/apps/news?pid= ... iSL0vQ4Fvw
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