Date
14 December 2017
Chinese enterprises are expected to report an average of 12.1 percent growth in earnings next year. Photo: Reuters
Chinese enterprises are expected to report an average of 12.1 percent growth in earnings next year. Photo: Reuters

China stock market set for robust growth next year: Baring

China’s stock market is poised to rebound at a fast pace next year amid expectations of robust corporate earnings, analysts at Baring Asset Management said.

The wealth management firm projects that Chinese enterprises will report an average of 12.1 percent growth in earnings next year, compared with a 1.9 percent rise this year, giving support to equities not only in China but in Asia as a whole, the Hong Kong Economic Journal reported.

More monetary easing measures are expected to be rolled out in the next six to 12 months in China, India and other parts of Asia and Europe, said Khiem Do, head of Asian multi asset at Baring.

Do expects the US Federal Reserve to hold its rate hike until the middle of next year, and the delay will benefit Asian currencies.

As concerns over capital outflow subside, China will have more room to lower its interest rates, Do said.

Do said the Chinese economy will continue to be driven by robust growth in the services industry, which represents over 50 percent of the country’s gross domestic product.

[Chinese version中文版]

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