JPMorgan lowers its forecast for the Chinese stock market

JPMorgan Chase & Co. experts have revised their position on the Chinese stock market from «buy» to «neutral», citing a number of negative factors.

In particular, they note the slowdown in the growth of the Chinese economy, insufficient measures on the part of the authorities to stimulate economic development and uncertainty associated with the upcoming presidential elections in the United States.

Experts fear that a potential new trade war between China and the United States will put serious pressure on the Chinese stock market. They believe that the consequences of such a conflict may be more serious than last time and lead to a structural weakening of China's economic growth.

Along with other leading global investment banks, JPMorgan predicts that China's GDP growth rate will not reach Beijing's target of 5% this year. In this regard, experts advise investors to review their portfolios and pay attention to the stock markets of India, Mexico, Saudi Arabia, Brazil and Indonesia.