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Fund winds blowing eastward
(China Daily/Agencies)
Updated: 2009-12-04 08:05
Stock rally skepticism
"My sense is there is still quite a lot of cash sitting out there," Sakthi Siva, an analyst at Credit Suisse Group, said at a media briefing in Hong Kong yesterday.
Credit Suisse's private bank clients in Hong Kong and the mainland hold about 55 percent cash, more than a "normal level" of 30 percent, due to skepticism in the stock market rally and as they wait for a "correction", according to Siva.
Real estate in China is "slightly expensive, but not a bubble", Deng said. The nation needs a gradual exit strategy to prevent a bubble, he said.
China is among the emerging markets facing risks of property and commodity market bubbles, central bank advisor Fan Gang said on Nov 18, echoing the World Bank, which said last month that the nation needs to tackle the "misallocation of resources".
Continued expansion
China's five largest banks have submitted plans to regulators for raising money after record lending eroded their capital, sources had said.
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Investors should also favor companies that will sell shares in Shanghai for the first time next year, Deng said. China Mobile Ltd, CNOOC Ltd and China Resources Enterprise Ltd were named as examples of companies that would likely perform well in Hong Kong ahead of their mainland listings, Deng wrote in his Oct 29 report.
"Liquidity is favorable to Chinese shares, particularly the Hong Kong-listed mainland company shares," the analyst said.
