Bank of America warns against a close correction course in Chinese shares

The Chinese equity rally could soon face a large correction wave, given the similarities between the current rally with the recovery and collapse cycle in 2015, according to strategies at the Bank of America for Securities. The strategies, led by ‘Wu Wu’, wrote in a memorandum on Monday that the “Hang Singh” index for Chinese businesses (HSCEI) and the Chinese MSCI China index increased by at least 30% of their lowest levels in mid -January, which is about the rate of profits we saw in 2015 before the market refused. After reaching its peak in May 2015, the index ‘Hangh Singh Sing for Chinese Companies’ fell by about 50% until February the following year and has not reached this increase yet. The streets added: “There are some similarities in the basics between the current session and those that preceded them ten years ago, with the cycle of economic balance and the policy cycle.” However, the multi -expansion height may be at risk. The warning “Bank of America” ​​comes amid a wave of Saudi interests that swept the Chinese market this year, earning profits that excelled in the global markets. The technological breakthroughs of Deep Sick, and Beijing’s intention to achieve economic expansion have led the Chinese shares previously avoided global funds. The decline in investors’ conviction in the superiority of US equities has driven them to Chinese shares. The “Hanging Sing” index decreases 0.9%, says the bank’s strategy, citing their investment journey to Shanghai, that investors on the continent on the continent are concerned about the lack of improvement in jobs, contraction and the demand for credit, while the effect of geopolitical tension was ignored. They pointed out that some investors also expect ‘bubbles’ in some technological sectors. The ‘Hanging Singh for Chinese Company’ index fell 0.9% on Wednesday before most of this decline was deleted. The Chinese “MCI” index moved in the same way, but it is still by more than 23% high. In the 2025 prediction report released on January 6, almost a week before the ‘Deep Seck’ surprise to the world, Wu and her colleagues said that the worst discount we saw in the classification of Chinese shares and the wave of sales ended. In a report released on September 27, they said that despite the poor investor confidence, they were more optimistic about the rally. The Chinese “MCI” index rose 13% on October 7 before its highlight.