The Weekly Brief (13 April 2015) - J.P. Morgan Asset Management
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The Weekly Brief (13 April 2015)

Contributor Global Markets Insights Strategy Team

The year of the Sheep is characterised as one of promise and prosperity, this seems to be accurate when looking at the equity market – the Shanghai Composite index has gained 25% this year despite a slowing economy.

The surge in equities has less to do with growth and more to do with liquidity and valuations. The challenging economic outlook is leading to a case of ‘bad news is good news’ for Chinese equities. Sentiment is spilling over into the international market via the Hong Kong-Shanghai Stock Connect as investors look for arbitrage opportunities for dual-listed companies. The pace of the gain in Chinese equities is alarming but with further policy easing likely and valuations that remain unchallenging, this may be the sheep with the golden fleece.

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Please be aware that this material is for information purposes only. Any forecasts, figures, opinions, statements of financial market trends or investment techniques and strategies expressed are, unless otherwise stated, J.P. Morgan Asset Management’s own at the date of this document. They are considered to be reliable at the time of writing, may not necessarily be all-inclusive and are not guaranteed as to accuracy. They may be subject to change without reference or notification to you. JPMorgan Asset Management Marketing Limited accepts no legal responsibility or liability for any matter or opinion expressed in this material.

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The Weekly Brief - 13th April 2015