Chinese equities are relatively resilient thanks to “the end of US exceptionalism”, signs of stabilised corporate earnings and room for policy support, HSBC Asset Management said on Tuesday.
“The growth part of our investment strategy is a story of the end of US exceptionalism, and this opens up an opportunity for other parts of the global stock markets to continue their process of outperforming in 2025,” said Joseph Little, the firm’s global chief strategist.
“For example, the growth in the Chinese stock market’s profits would be on a similar level to what we see in the US,” he said. “But of course, it is available for investors at a much cheaper valuation, a much cheaper entry price.”
“Despite ongoing uncertainties stemming from … US tariffs, Chinese equities have shown strong resilience over the past two months,” said Caroline Yu Maurer, HSBC Asset Management’s head of China and core Asia equities.
Hong Kong’s Hang Seng Index has risen 20 per cent so far this year, while the CSI 300 Index, which tracks mainland China’s largest onshore-listed companies, was little changed.
