Chinese Shares Rebound as Tech Sector Turns Corner
Chinese shares have surged this year on optimism about gains in artificial intelligence, while President Xi Jinping's meeting with corporate leaders has been seen as a possible end to the year-long crackdown on the private sector. The positioning is light, valuation is low, and earnings could surprise on the upside, according to Frank Benzimra, a strategist at Societe Generale SA. However, investors remain cautious about the implications of President Trump's move to further decouple economic ties between the two nations.
- The rebound in Chinese tech shares highlights the ongoing tensions between the need for growth and the concerns about regulatory capture.
- Can China maintain its economic momentum while navigating the increasingly complex landscape of global trade policies?