Mizuho Securities: Still "Moderately Bullish" on Chinese Stock Market, Believes Market May Have Bottomed in 2024

Mizuho Securities believes that the CSI 300 index already bottomed in 2024, while Chinese government bond yields hit bottom in early 2025. It suggests a 30/70 allocation for Chinese bonds and stocks, while favoring value stocks. It believes that supply-side energy shocks triggered by Middle East conflicts will drag on growth, but China is "better positioned than many of its neighbors" in resisting these pressures. If Mizuho's judgment holds, China's year-on-year Nominal Gross Domestic Product (GDP) growth is expected to "reach its strongest in five years".