JPMorgan Chase & Co. has raised its recommendation for China’s stocks to “overweight,” stating that the prospect of large gains next year now outweighs the risk of significant losses.
“China has given back most of its outperformance this year — making for an attractive entry point,” strategists at the bank including Rajiv Batra wrote in a note published Wednesday. “Next year will bring multiple support factors such as AI adoption, consumption measures and governance reforms.”