Chinese Stock Indicator With 100% Success Rate Is Flashing Buy.

According to Bloomberg, the risk premium of Chinese stocks has reached a level that historically leads to significant returns. The CSI 300 Index has lost about 42% from its peak in 2021, while China's bond market has extended its rally. Compared to bonds, Chinese stocks are currently very cheap, with the earnings and dividend yields of the stock benchmark surpassing long-term bond yields. Historically, when the stock-bond yield gap has reached 5.5 points or more, stocks have risen in the following 12 months with an average return of 57%. However, it is important to note that valuation alone is not enough to turn around the market, and improvements in earnings and policy support are needed. [Extracted from the article]

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