JPMorgan: 4 Reasons China Is About To Come Bounding Back In The Second Half Of The Year


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JPM makes the bull case on the Chinese economy:A rebound likely on sequential growth recovery in 3Q FY11.We believe the China market might have reached the maximum stress point, given: (1) CPI is expected to peak around June/July this year; (2) the magnitude of the monetary tightening may have peaked as the inter-bank rate has started to flatten out; (3) China’s sequential economic growth appears to have troughed in 2Q FY11; and (4) we have seen the first signs of a possible policy loosening from the government, as indicated by the recent suspension of the PBoC bill issuance.


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