• BlackRock Investment Institute downgraded Chinese stocks to neutral from overweight, citing concerns over the nation’s property sector and the limited boost from stimulus.
• Chinese stocks are among the world’s worst performers this year, with the Hang Seng China Enterprises Index having fallen more than 20% from a January high. The country’s economy is struggling with default risks in the property market and a sluggish recovery in domestic consumption. Beijing has announced various stimulus measures since July, with limited effect.
• In the meantime, BlackRock strategists further upgraded Japanese stocks, thanks to “strong earnings, share buybacks and other shareholder-friendly corporate reforms.”