China Valuations Looking More Reasonable: Macquarie

Following the recent 20% stock market correction, valuations in China look a good deal more reasonable, although current multiples for Staples, Healthcare and IT still look stretched, notes Macquarie. Joshua van Lin of Macquarie Capital Securities in the Asia strategy research report titled: “China: Taking stock”, notes ROE erosion in big SOE sectors is a drag on MSCI China. Most China stocks now at reasonable valuations Drawing attention to Macquarie’s April 30, 2015 report titled: “Are H-shares overvalued?”, the analyst recalls the firm argued that the scope for further upside appeared limited based on fundamentals. As can be seen from…