Saudi Press

Saudi Arabia and the world
Monday, Jun 02, 2025

Trillion Dollar Fund Manager Says Buy China Stocks, American stocks highly priced with profit growth waning

Trillion Dollar Fund Manager Says Buy China Stocks, American stocks highly priced with profit growth waning

Investors should ignore pricey U.S. stocks and turn to their cheaper Chinese peers instead, where further stimulus will help propel earnings growth, according to T. Rowe Price.

Chinese shares trade at a discount and will benefit as authorities crank up efforts to promote the flow of credit in the world’s second-largest economy, said Thomas Poullaouec, head of Asia Pacific multi-asset solutions for the $1.1 trillion asset manager in Hong Kong. By contrast, U.S. shares are pricey and Federal Reserve stimulus is already well priced in by investors, he added.

“China is the one where we have a preference because of valuation and because of the expectation that Chinese stimulus can provide some uplift to earnings,” he said in a telephone interview. “China is committed to manage this cycle in a very prudent way with policy measures.”

The Shanghai Composite has risen about 9% in the past month, the best performer among global peers, and money is flowing into China’s equity market through its exchange link with Hong Kong. The S&P 500 Index has risen just 2% with strategists such as Citigroup Inc. dialing back their U.S. equity stance as the trade war and economic growth concerns weigh on sentiment.

The multi-asset group at T. Rowe Price -- which manages about $333 billion -- favors an underweight stance on American shares, and is neutral on Japan, with emerging markets its only overweight equities position. That’s been tested this year as developed market stocks handed investors more than double the return of their developing-nation peers.

“It’s been quite painful at times -- especially when things are happening, like in Argentina,” he said. “China can bring some good momentum and support others around it.”

For Poullaouec, what’s key to China’s upside is that upcoming stimulus efforts are currently under-recognized by investors. In the U.S., by contrast, expectations for policy support from the Fed have run too far.

“The market is pricing many more cuts than what they can deliver,” he said.

Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
European and Arab Ministers Convene in Madrid to Address Gaza Conflict
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
UAE Offers Free ChatGPT Plus Subscriptions to Citizens
Lebanon Initiates Plan to Disarm Palestinian Factions
Iran and U.S. Make Limited Progress in Nuclear Talks
The Daily Debate: The Fall of the Dollar — Strategic Reset or Economic Self-Destruction?
Trump Administration's Tariff Policies and Dollar Strategy Spark Global Economic Debate
OpenAI Acquires Jony Ive’s Startup for $6.5 Billion to Build a Revolutionary “Third Core Device”
Turkey Weighs Citizens in Public as Erdoğan Launches National Slimming Campaign
Saudi-Spanish Business Forum Commences in Riyadh
Saudi Arabia and Spain Sign MoU to Boost SME Sectors
UK Suspends Trade Talks with Israel Amid Gaza Offensive
Iran and U.S. Set for Fifth Round of Nuclear Talks Amid Rising Tensions
Russia Expands Military Presence Near Finland Amid Rising Tensions
Indian Scholar Arrested in Crackdown Over Pakistan Conflict Commentary
Israel Eases Gaza Blockade Amid Internal Dispute Over Military Strategy
President Biden’s announcement of advanced prostate cancer sparked public sympathy—but behind closed doors, Democrats are in panic
A Chinese company made solar tiles that look way nicer than regular panels!
Indian jet shootdown: the all-robot legion behind China’s PL-15E missiles
The Chinese Dragon: The True Winner in the India-Pakistan Clash
Australia's Venomous Creatures Contribute to Life-Saving Antivenom Programme
The Spanish Were Right: Long Working Hours Harm Brain Function
Did Former FBI Director Call for Violence Against Trump? Instagram Post Sparks Uproar
US and UAE Partner to Develop Massive AI Data Center Complex
Apple's $95 Million Siri Settlement: Eligible Users Have Until July 2 to File Claims
US and UAE Reach Preliminary Agreement on Nvidia AI Chip Imports
President Trump and Elon Musk Welcomed by Emir of Qatar Sheikh Tamim with Cybertruck Convoy
Strong Warning Issued: Do Not Use General Chatbots for Medical, Legal, or Educational Guidance
Saudi Arabia Emerges as Global Tech Magnet with U.S. Backing and Trump’s Visit
This was President's departure from Saudi Arabia. The Crown Prince personally escorted him back to the airport.
NVIDIA and Saudi Arabia Launch Strategic Partnership to Establish AI Centers
Trump Meets Syrian President Ahmad al-Shara in Historic Encounter
Trump takes a blow torch to the neocons and interventionists while speaking to the Saudis
US and Saudi Arabia Sign Landmark Agreements Across Multiple Sectors
Why Saudi Arabia Rolled Out a Purple Carpet for Donald Trump Instead of Red
Elon Musk Joins Trump Meeting in Saudi Arabia
Trump says it would be 'stupid' not to accept gift of Qatari plane
Quantum Computing Threatens Bitcoin Security
×