China Stocks Rally Set to Pause as Profits Drop, Citigroup Says
June 4 (Bloomberg) -- A rally in China’s stocks that’s driven the benchmark index up 53 percent this year is set to pause as corporate profits fail to recover, according to Citigroup Inc.’s Xue Lan.
“The recent rally has been too much, too fast,” said Xue, head of China research at Citigroup, in a Bloomberg Television interview in Hong Kong today. “Consolidation is very much needed and very much anticipated. People have been buying stocks very indiscriminately and not all sectors are seeing earnings recovery.”