HSBC Global Research
 

Excerpt from HSBS Global Research article, read the full article here.

We believe the macro-adjustment of 2004 offers a good comparison for the policy normalisation process unfolding in the year 2010.

At the same time, we'd like to stress our view that, despite numerous media reports to the contrary, China has no intention of restricting new lending - the government's emphasis is on smoothing quarterly lending patterns.  We don't think this will have a material effect on economic growth and we reiterate our 2010 index targets:  MSCI China at 75, SHCOMP at 3,500, Hang Seng at 26,000 and H-shares at 16,000.  But first, we look at 2004.....


 

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