(Bloomberg) China’s stock market won’t see much upside during the first half of next year as the nation’s reforms of initial public offerings will spur a new supply of shares, and earnings growth will remain subdued, according to Singapore-base fund manager Lygh Capital Pte.
“I am cautious about this new supply coming to the market,” Grace Lu, managing director at Lygh and portfolio manager of the GH China Century Fund, said in an interview. “Stock markets will go sideways at best over the first half,” said Lu, who previously worked at a unit of Singapore’s state-owned investment firm Temasek Holdings Pte.
