China Stock Market Outlook 2018


As the U.S. stock market continues to rally relentlessly it is most likely on its path to set a major top and correct sharply anytime soon. If and when that happens we believe at InvestingHaven that capital will rotate out of U.S. stock markets into emerging stock markets. So the question is, if that is true , which emerging market to choose? InvestingHaven’s research team strongly believes that China must be on your radar. China’s stock market outlook for 2018 is bullish to very bullish, find out in this article why we believe so.

China’s foundations: amazing +6 pct economic growth in 2018 and beyond

It is amazing that there are countries in 2018 that are able to have economic growth of more than 6 percent. That is hardly possible in the West, only emerging markets can set growth figures of more than 6 percent.

  • China is expected to grow 6.3 pct according to the World Bank and 6.4 pct according to the OECD.
  • China’s growth forecast for 2018 is 6.8 percent.
  • While China’s growth rates for 2019 to 2022 have similarly been revised upward by 0.2 percentage point on average, the IMF urged the Chinese authorities to intensify their recent efforts to rein in credit expansion and strengthen financial resilience.
  • Reuters says: World Bank raises 2017, 2018 East Asia growth forecasts, sees geopolitical risks
  • China’s economy seen growing 6.8 percent in 2017 and 6.4 percent in 2018:Reuters poll.
  • What stands out is the economic growth which, more importantly, comes out higher than expected.

    The caveat is the geopolitical risk, which, in all honesty, is not something exclusive to China or the East. Geopolitical risk is almost a reality to all countries; and if it’s not geopolitical it certainly is terrorism.

    China stock market outlook for 2018

    This continued strong economic growth will certainly propel stock markets. There is no one-to-one correlation but a lack of economic growth is certainly not helping stock markets; we look at the economic outlook as a mandatory condition or healthy ground on which a positive stock market growth can take place.

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