JPMorgan Chase & Co abandoned its buy recommendation for Chinese stocks, citing heightened volatility around the upcoming US elections in addition to growth headwinds and tepid policy support.
China was downgraded to neutral from overweight in the bank’s emerging markets allocation, strategists led by Pedro Martins wrote in a note Wednesday. The potential for another trade war between Washington and Beijing could weigh on shares, while China’s moves to lift itself out of its economic slump remain “underwhelming,” they said.
