SHANGHAI - China's stock market, pushed lower by Beijing's monetary tightening moves, may retreat further, but investment opportunities will emerge when the economy stabilises next year, JPMorgan Chase & Co's Chinese fund joint venture said on Tuesday.
Stocks that stand to benefit from government support for domestic consumption and innovation could be safe bets for now, while buying opportunities in traditional sectors such as resources would come during the first half of next year, said Luo Jianhui, fund manager at China International Fund Management Co.
Property measures inspection launchedThe higher-than-expected 4.4 percent rise in china's consumer price index in the year to October raised the spectre of runaway inflation as well as fears of further tightening, effectively putting an end to October's bull run, Luo said.
In the past several weeks, the authorities have raised interest rates, increased bank required reserve ratios twice, adopted price controls on certain daily necessities and vowed to take even tougher measures to fight inflation.
Luo said he expected policy fears to fade early next year as inflation pressure eases, making stocks attractive again.
