China’s stock markets in Shanghai and Shenzhen have delivered impressive gains this year, drawing renewed interest to Chinese equities. Once (mistakenly) dismissed as “un-investable” due to regulatory uncertainty and underperformance, these markets are now recovering strongly, thanks to attractive valuations, targeted policy measures, and improving consumer sentiment. While sceptics argue the rally is purely liquidity-driven, we see reasonable valuations, growing domestic consumption and a 25 trillion dollars domestic savings cushion. We remain positive on the potential of China’s equity markets. 

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