JP Morgan Says China Real State Has Stabilized

There is one reason to be bullish on China despite its recent downturn, Andres Garcia-Amaya said Thursday: Real estate.

“China’s real estate is starting to find a bottom. If you remember, the whole bear case for China was this collapse in real estate. They’ve had three months in a row of upticks in prices,” J.P. Morgan Asset Management’s emerging market analyst told CNBC’s “Fast Money: Halftime Report.”

“If you continue to see that, the bears are going to have less legs to stand on,” he said.

China’s benchmark Shanghai Composite gained 3 percent overnight, but remained more than 0 percent lower in the last three months.

Garcia-Amaya also said he is optimistic about another emerging market: Russia.

“Russia actually our biggest overweight,” he said. “It’s one of the few markets that is up year to date and … with all the issues it has, it’s still trading at 4 1/2 times price-to earnings [and] the yield is 5 percent. You rarely see something in which the P/E is lower than the dividend yield.”

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza