The return to the average for most macroeconomic indicators is taking place, both in America and other major economies. Growth rate, inflation, manufacturing, all show that the highest levels have been reached.

This decline in the indices is necessary to avoid overheating of both the economy and the markets, and with the correction that has preceded, more attractive conditions are now created for investors to open new positions. Now, the main goal is to maintain a consistently high growth rate.
All the targeted actions of the previous months have borne fruit and now the Chinese economy can face the future with a bigger sense of safety as the Authorities managed to keep away the economy from problematic conditions.

As investment capital follows similar paths, especially when referring to large economies, there is a very significant discount in the price of China Technology Index. We estimate that this discount will not last for a long time yet.

Another important factor for the future of Chinese companies is the talks that have started again between the USA and China, as this could lift the bans that apply to major Chinese companies, regarding their trading in the American markets.

Although for the time being, the bans are in force, there are companies for which this ban no more exists. In addition, as the measure is no longer expected to generalize, the strong sales observed in recent months have been minimised and this means that large investment funds put no longer a brake on the further rise of Chinese stocks.

On the other hand, the Chinese authorities are taking care to motivate Chinese investors to invest in the stock market in an effort to find domestic buying interest that could balance the outflows of foreign investors.

In addition, with the forward P / E of the US market being now more expensive, investors could look for opportunities in large emerging markets, with China raising most of the capital.