JPMorgan China equity strategist Zhang Xiaoning said in an interview that supply constraints in AI hardware are likely to last at least through 2028, while the debt concerns surrounding major technology companies amount to an "overreaction" because their bond ratings remain in investment-grade territory. The bank is keeping an overweight stance on Chinese equities and has set its base-case targets for the end of 2026 at 100 for the MSCI China Index and 5,200 for the CSI 300 Index. In a bearish scenario, those targets would fall to 80 and 4,000, respectively. Zhang also said AI technology is still expected to be the core theme for China’s market in the second half of the year. JPMorgan’s view is that AI will regain market leadership and that the current pullback reflects a healthy rotation rather than the end of the AI cycle. She added that overseas investors remain focused on the strength of macro policy support and the pace at which "six-network" investment plans are implemented, according to 21 Finance.
Odaily reported that JPMorgan China equity strategist Zhang Xiaoning said in an interview that supply constraints in AI hardware are expected to last at least through 2028. She also said debt worries tied to major technology companies are an "overreaction" because their bond ratings remain investment grade, according to 21 Finance.
JPMorgan is maintaining an overweight call on Chinese equities and has set its base-case targets for the end of 2026 at 100 for the MSCI China Index and 5,200 for the CSI 300 Index. In its bearish case, the targets are 80 and 4,000, respectively.
Zhang said AI technology is still expected to be the core market theme in China in the second half of the year. JPMorgan said AI is likely to re-establish market leadership, and that the current pullback reflects a healthy rotation rather than the end of the AI cycle.
She added that overseas investors are still watching two issues most closely: the strength of macro policy support and the pace of implementation for "six-network" investment.
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