China Strategy
2011 Outlook: A Year of
Re-rating
Several bullish themes for Chinese equities in 2011:
1) Cheap valuation, humble relative performance in
2010, and mild consensus outlook.
2) Solid earnings growth outlook supported by
expansive fiscal policies. Upside risk in large-caps.
3) Contained inflation risk with stable monetary
policies and moderate tightening.
4) Strong currency, still ample global liquidity
environment, good risk appetite.