According to a report from HSBC strategists, China's A-share market is expected to remain resilient, supported by a strong economic start to the year. They highlighted that key activity indicators for January and February rebounded, exceeding HSBC's expectations, driven by robust exports, a recovery in manufacturing and infrastructure investment, and an extended Lunar New Year holiday period. While the Federal Reserve's anticipated single interest rate cut this year may hinder capital inflows into emerging markets and lead to further foreign outflows, HSBC projects ample liquidity in the Chinese market. This is attributed to increased mutual fund issuance and an estimated RMB 3.8 trillion in deposits shifting from banks into A-shares.
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