Baxter Switzerland: The current surge in Chinese equities driven by technology stocks still has room for further growth.

Swiss BNP Paribas Asia Wealth Management's chief strategist and research head, Chen Dong, believes the surge in Chinese equities driven purely by valuation may have largely run its course, as the valuations of major sectors in Chinese equities have returned to their long-term averages. The next phase of the bull market will depend on whether Chinese tech companies can continue to introduce new and exciting artificial intelligence-related applications, and whether their earnings can maintain healthy momentum. He added that the worst is over for Chinese equities, with the property market in first- and second-tier cities beginning to improve, and more government stimulus measures to come in the future. He expects the current surge in Chinese equities driven by tech stocks to have more room to rise, but the pace of the rally may not be as fast as before. Chinese equities have also experienced several rounds of short-lived rallies in the past few years, and Chen noted that these rallies were short-lived and followed by a sharp correction because the rallies were driven purely by investors' expectations of stimulus policies. Although the trade tensions between China and the US remain the biggest uncertainty for Chinese equities, Chen expects investors' sentiment towards Chinese equities to continue to improve if the trade tensions remain at the current level and do not escalate.