equity strategy

Don't ignore bear market rallies, buy China stocks

The current equity market correction is likely to be reversed, providing a solid 5% to 10% upside, according to Samsung Securities.

The recent market crash provides good investment opportunities in Chinese equities because they are less risky and China's economy is still growing at a respectable pace, according to Samsung Securities.

“The current equity market correction is likely to be reversed, providing a solid 5% to 10% upside,” Viktor Shvets, an equity strategist at the brokerage, said in a report. And “there is a high probability that Chinese equities will continue to outperform”.

The firm stated three reasons why Chinese stocks will outperform. One, the stocks are less risky than many others. Two, China continues to retain the ability to stimulate its economy, at least in 2011 and...

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