Salient to Investors:
Mark McCombe at BlackRock said China’s economic growth is poised to recover after once-in-a-decade leadership transition, and boost stock markets . The focus on consumption will benefit health-care and education stocks.
BlackRock and Citigroup say policies to boost China’s growth will be clearer after the leadership change. Other analysts.
Chen Ruiming at Haitong Securities and Hao Hong at Bank of Communications say China will struggle to reverse the slowdown.
The median forecast of 45 economists expects China to grow 7.7 percent in 2012.
Jing Ulrich at JPMorgan Chase said investor confidence will rebound China’s new leaders focus on domestic consumption as a driver of growth, and many Asian equities are inexpensive relative to their long-term growth potential.
The MSCI Asia-Pacific Index is at 12.7 times estimated earnings versus 13.2 times for the MSCI World.
Chen Li at UBS is not optimistic for the next 12 months as the Chinese economy hasn’t stabilized.