Stephen Jen Says China Has Turned Corner, Sees 10% Stock Rise

Chinese stocks are poised to gain 10% by year-end as Beijing’s supportive policies drive growth and valuations remain discounted, according to London-based asset manager Eurizon SLJ Capital.

Dovish regulatory policies have revived confidence, setting the stage for 5% to 10% earnings growth, the firm’s CEO Stephen Jen and economist and portfolio manager Joana Freire wrote in a Monday note. They said China is handling property deflation “quite well,” with supply contracting and demand recovering, while households’ substantial savings provide fresh fuel for equities.