With the world’s second-largest economy again entering a prosperous growth phase, its outlook gleams with promise. Hence, it could be wise to invest in strong China stocks Sunlands Technology Group (STG – Get Rating) and Tarena International, Inc. (TEDU – Get Rating), which are poised for solid returns. Let us discuss this in detail.
China’s economic growth hit a decades-low level in 2022, with a meager 3% increase in its Gross Domestic Product (GDP), marking the second-slowest growth rate since 1976. However, the lifting of stringent COVID-19 lockdowns has led to gradual stabilization and improvement in the world’s second-largest economy.
The nation’s long-term outlook appears optimistic. The International Monetary Fund (IMF) has raised its forecast for the Asia-Pacific region, attributing its growth primarily to China’s recovery and India’s resilient economic expansion. The organization raised its growth projection for China to 5.2%.
According to Standard Chartered Chairman José Viñals, China’s economy is expected to be “on fire” in the second half of the year. Goldman Sachs (GS) projects a potential 24% increase in the MSCI China index as the country transitions from the reopening phase, which followed strict zero-Covid policies, to a period of economic growth.
Abigail Yoder, U.S. equity strategist at J.P. Morgan Private Bank, has expressed optimism regarding Chinese equities. She anticipates that returns are more likely to be driven by corporate earnings rather than valuations. She pointed out that many companies in China have successfully safeguarded their…
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