China’s capital market got a welcome boost on Monday after Premier Wen Jiabao said the government will focus more on bolstering economic growth and news broke the railway ministry is to receive more than 2 trillion yuan ($316 billion) in credit.
China’s Top Fund Manager Sees Stock Gains on Pro-Growth Policy
By Bloomberg News - May 25, 2012 5:39 AM GMT+0800
China
’s best-performing fund manager says the government’s pro-growth policies and pledge to compel state-owned companies to increase dividend yields will boost the nation’s
stocks
in the second half of the year.
Yinhua Fund Management Co.’s Wang Qi said he has turned optimistic on yuan-denominated shares, on prospects for further monetary policy easing after April data signaled a deepening slowdown in the world’s second-biggest economy.
His outlook is a change from mid-2011, when he said in the fund’s semi-annual report that stocks would trade “range-bound,” and comes as the government said this month during economic talks with the U.S. that state-owned firms will lift
dividend
payout ratios.
China’s Top Fund Manager Sees Stock Gains on Pro-Growth Policy
“The stock market is at the bottom now and may rise with monetary policies being eased,” Wang said in an e-mailed interview from Beijing yesterday, declining to give a target for equities. “If mandatory rules on dividend payments can be implemented, we’ll be able to see shares with high dividend yields and that’ll make stock investment attractive.”
“We have turned optimistic about the A-share market this year because valuations are already at relatively low levels and the government has the ability to deliver steady economic growth and maintain economic stability,” Wang said.
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