0950 GMT - The outlook for Chinese equities over the next two years looks very different from the past two, according to HSBC Global Research analysts in a note. While foreign investors have been slow to return to the Chinese equity market, there are several reasons to consider investing in Chinese stocks, they say. Firstly, industries are slowly consolidating, which could impact earnings as early as 2025. The consolidation would be positive for the earnings of the survivors, which tend to be the listed firms as their pricing power will increase, they say. The market also remains attractive from a valuation perspective. Even after the recent rally, mainland Chinese equities still trade slightly below their average 5-year historical valuation, indicating potential for further multiple expansion, they add. (jiahui.huang@wsj.com; @ivy_jiahuihuang)

(END) Dow Jones Newswires

February 24, 2025 04:50 ET (09:50 GMT)

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