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The global stock market may enter a deep correction

Senior Credit Suisse officials pointed out on Wednesday that global stock markets are undergoing consolidation. They believe there may be a deep correction next.

Ray Farris, Credit Suisse South Asia Investment Chief, stated that data has become more volatile as global growth momentum approaches its peak. He warned that the global stock market might enter a deeper correction. But Farris also said that after the stock market started this year strongly, the recent wave of corrections will bring great opportunities for investors.

According to reports, since the closing price on the last day of 2020, the US S&P 500 index has risen nearly 6%. The pan-European Stoxx 600 index has increased by 7.66%. Japan’s Nikkei 225 has advanced by 6.32%; Hong Kong’s Hang Seng Index expanded by 4.21%.

The financial services company affirmed that its focus has always been not to chase the stock market that has soared in the past few months. 

Farris explained that in the 30 years ending in 2019, the stock market had an average correction of about 14%. However, the increase since the bottom was as high as 39%. He pointed out that the average correction rate of the S&P 500 index in 2020 was about 9%, but then it expanded by 29%.

Best Chinese stocks to buy now

Tencent Stock

This is a Chinese massaging, gaming, and payments company. Its earnings growth has hastened for three straight quarters. In the fourth quarter, it reached 37%. The EPS rating of the company equals 96 out of a best-possible 99.

Bilibili Stock

Bilibili is a well-known video barrage website in China targeting younger generations. Besides, it includes live broadcasting and mobile games. 

Analysts believe the company will keep losing money through at least 2022. However, sales growth has increased for the last three quarters. In Quarter 4, its profit grew by 104% to $588.4 million.

Futu Stock

This Chinese online brokerage firm’s earnings surged by 531% per share in the first quarter. Revenue increased by 348%. Even though the EPS rating is only 70, it is expected to improve after the latest results.

Trip.com

This is a China-based online travel site. However, it serves customers globally. Because of the pandemic, trip.com lost money in the Quarter 1 of 2020. Still, with a covid-19 fading, analysts expect it to earn 49 cents a share this year.

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