U.S. investment bank JPMorgan Chase & Co. (NYSE:JPM) has announced the expansion of its equities research coverage for Greater China after it hired six more people. Four new analysts have been added to technology as well as one each for energy and infrastructure teams. According to a senior banker the investment bank is also expected to hire more members of staff in 2018 as the interest in Chinese stocks by global investors increases.
According to James Sullivan, the head of JPMorgan in Asia, the rise in demand for Chinese shares is partly attributable to the inclusion of the country’s shares in the emerging markets benchmark by MSCI, the U.S. index publisher.
“What we are seeing now in particular is that some of the largest investors in the world are taking a very different stance on the A-share market,” said Sullivan in reference shares listed in China’s onshore market.
This comes at a time when data streaming out of China is expected to show that the efforts of policy makers to foster sustainable growth for the long term and reduce financial risk led to the cooling of the country’s economy in October. During the Communist Party Congress the strategy was amplified by Xi Jinping, the president of China, who called for policy to emphasize quality over quantity.
Though the government continued to spend heavily on infrastructure which resulted in the fiscal policy being kept fairly loose and leading to strong growth throughout 2017, efforts have also been ramped up with a view to reducing the addiction to debt that China has displayed for many years.
According to Nomura’s economist based in Shanghai, Wendy Chen, the slowdown will be extended all through to the close of the year due to factory output being hit by pollution curbs. Weaker spending on infrastructure and property will also contribute to the cooling of investment growth. In October factory output growth is expected to fall to 6.3% compared to 6.6% which was recorded in September. However Beijing’s economic growth target of 6.5% will be easily achieved.
On Friday shares of JPMorgan Chase & Co fell by 0.18% to close the day at $101.41.