Deeper bear market ahead for China, warns report

Current valuations are still too high.

Chinese equities may be headed for greater pain ahead after their dismal start in 2016, according to a report by BMI Research.

The report warned that current valuations are unwarranted given the poor earnings outlook, and efforts by the Chinese regulators to stabilise the equity market are unlikely to bear fruit.

“Valuations are not excessively expensive relative to those witnessed at the peak in June 2015, but they remain unwarranted given the country's deteriorating macroeconomic and corporate fundamentals,” the report said.

BMI Research noted that any rebound is likely to be short-lived, and a break below the August 2015 level could see the index fall towards 2,500.

“While GDP figures released by the National Bureau of Statistics (NBS) showed that the mainland economy grew by 6.9% in 2015, we believe that these numbers overstate the pace of economic growth in the country, with various high frequency indicators suggesting actual conditions are considerably worse,” the report added.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia