Stock Analysts Are Most Bullish on Chinese Companies in a Decade
- About 86% of all ratings in CSI 300 Index are a buy equivalent
- Analysts upbeat in Korea; less optimistic in Australia, Japan
Equity analysts just keep getting more bullish on Asian companies, especially in China, where the proportion of buy equivalent ratings in local stocks has now surpassed South Korea to the highest since 2011.
About 86% of the more than 5,600 total stock recommendations in the benchmark CSI 300 Index are now a buy equivalent, according to data compiled by Bloomberg as of Jan. 14. That’s an increase of five percentage points from a year ago, and has seen China overtake long-time leader Korea as the major market that analysts are the most upbeat about in the Asia Pacific region, the data show.
Analysts are growing increasingly sanguine as vaccine rollouts boost bets of a rebound in economies, especially export-focused ones like China and South Korea, as well as corporate earnings. Asia Pacific stocks have started 2021 on a roll after a solid finish to 2020 as investors look to a post-pandemic recovery. The relentless rally, however, is spurring concerns about speculative excess, with valuations rich across several sectors.
