--- title: "The founder of the \"Dollar Smile\" latest prediction: China's stock market is about to rise by 10%" type: "News" locale: "en" url: "https://longbridge.com/en/news/282645896.md" description: "The well-known hedge fund Jige Capital predicts that the Chinese stock market is expected to rise by 10% by the end of 2026, benefiting from supportive policies, low valuations, and expectations of a bottoming out in the real estate sector. This judgment is consistent with the predictions of Goldman Sachs and JPMorgan Chase. CEO Stephen Jen pointed out that regulatory policies will boost corporate profits, and the contraction in real estate supply along with a recovery in demand will provide new momentum for the stock market. Additionally, if the conflict in the Middle East calms down, it will create further benefits" datetime: "2026-04-14T07:14:11.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/282645896.md) - [en](https://longbridge.com/en/news/282645896.md) - [zh-HK](https://longbridge.com/zh-HK/news/282645896.md) --- # The founder of the "Dollar Smile" latest prediction: China's stock market is about to rise by 10% The well-known hedge fund Eurizon SLJ Capital released a report on April 13, stating that the Chinese stock market is expected to rise by 10% by the end of 2026, benefiting from supportive policies, low valuations, and expectations of a bottoming out in the real estate market. This judgment is largely in line with previous predictions from Goldman Sachs and JPMorgan Chase, the latter of which had anticipated that the CSI 300 would rise to 5,200 points by 2026, representing an approximate 10% increase from current levels. The report's author, CEO Stephen Jen (the proponent of the "Dollar Smile Theory"), pointed out that this year may witness a bottoming out of the Chinese real estate market, with exports driving significant growth in corporate profits. Regulatory policies are boosting confidence, laying the groundwork for a 5%-10% increase in corporate earnings; a contraction in real estate supply coupled with a recovery in demand, along with high household savings, are providing new momentum for the Chinese stock market. If the conflict in the Middle East subsides, it will create additional benefits. Stephen Jen had previously predicted in August 2024 that the Federal Reserve's interest rate cuts would lead to a trillion-dollar capital inflow back to China, followed by a significant rebound in A-shares and Hong Kong stocks during the "9.24" market, with foreign capital shifting from two consecutive years of net selling to a net inflow of over $10 billion. 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