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Chinese stock recovery faces US Fed and oil pressures in September, says top fund manager
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Zhang Shidongin ShanghaiPublished: 2:28pm, 9 Sep 2026
Chinese stocks are likely to trade sideways through September, as resilient earnings growth is weighed down by concerns over potential monetary policy tightening in the United States, according to a recent strategy report by China Asset Management, the country’s second-largest mutual fund firm.
Mainland-listed companies posted double-digit profit growth in the first half of the year, providing a cushion that is expected to keep a floor under stock prices. But a hawkish tone from the US Federal Reserve and elevated oil prices were likely to cap equity gains, said the money manager, which oversees 2.2 trillion yuan (US$328 billion) in assets.
A faster pace of initial public offerings in the third quarter was also expected to squeeze market liquidity, it added.
“While the rebound is still getting under way, expectations for returns should be lowered in a rangebound market environment,” the firm stated in the report, as it advised investors to navigate the sideways market by buying on dips rather than chasing rallies.
Chinese equities have been recovering from a sharp sell-off in July that hit technology companies especially hard. The chip-heavy Star Market 50 gauge rebounded with a 3 per cent gain in August after plunging 26 per cent the previous month.
Still, markets weakened heading into September, approaching July lows after Fed Chair Kevin Warsh signalled that curbing inflation could remain the central bank’s top priority, followed by a hotter-than-expected August jobs report.
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