Jennifer Lai, portfolio co-manager of the Greater China Fund at Dalton Investments, was quoted in CNBC discussing the long-term outlook for Chinese stocks which began to decline during the summer of 2018. Lai believes that Chinese stocks could have a head start on a recovery, relative to U.S. stocks which hit correction territory late in the 4th quarter of 2018.
Trade tensions are just one of three concerns for Chinese stocks, and Beijing just needs some time as it is already working on the two other issues of credit conditions and the private sector, Lai says. “It’s actually possible the Chinese markets outperform the U.S. markets.”
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