Top dealmaker says Chinese markets are ‘close to the bottom’


By Michelle Toh, CNN Business

One of China’s top investment bankers says the country’s stock markets appear to be nearing “the bottom.”

Chinese markets have been battered in recent months by the impact of Beijing’s “zero Covid” policy, a real estate slump, aggressive regulation and jitters about the country’s close ties with Russia.

So far this year, the benchmark Shanghai Composite index has fallen 15%, while the Shenzhen Composite is down nearly 24%. On Monday, Chinese stock markets opened higher but struggled to sustain those gains after authorities reported grim economic data for the month of April.

“I do believe the market is close to forming the bottom now,” Fan Bao, CEO of China Renaissance, an investment bank and private equity firm, said in an interview with CNN Business in Hong Kong on Friday, referring to Chinese stocks. “I must say, [overall investor] sentiment is pretty bad.”

Bao said he…

Read more…