Investing
Buying Into China Stimulus Is ‘Painful Trade,’ Lombard Odier Says
- Bank’s Asia CIO points to risks of timing the rebound
- Swiss bank has kept a limited exposure to Chinese assets
After China’s stimulus package was announced, the nation’s CSI 300 Index surged more than 30% to a peak on Oct. 8.
Photographer: Raul Ariano/BloombergThis article is for subscribers only.
While China’s stimulus blitz delivered initial euphoria to the nation’s $10 trillion stock market, for Lombard Odier’s Asia investment chief it’s what happened after that has him on edge.
The sweeping package unveiled two months ago has created a dilemma for advisers to the super-rich, John Woods said in an interview. The resulting stock surge after years of under performance had some chasing the rally on bets this time was different, while other have grown wary of similar head fakes.