China’s equity market is expected to continue its upward trajectory into 2026, fuelled by robust corporate earnings, supportive government policies, and the return of domestic capital, according to George Efstathopoulos, a portfolio manager at Fidelity International. Fidelity International is a global asset manager that provides investment solutions and retirement expertise. The company helps clients around the world achieve their long-term financial goals.
Efstathopoulos stated that the groundwork is being laid for a sustained rally, citing China’s macroeconomic and corporate resilience, the gradual return of inflation, and a more accommodating policy environment as key factors driving potential gains. He anticipates that domestic savings will increasingly shift towards equities as the property market undergoes adjustments, with fiscal measures further bolstering consumption.
According to Efstathopoulos, offshore equities, particularly those weighted towards technology and artificial intelligence, stand to benefit from innovation. Conversely, onshore markets, which are more closely tied to domestic demand, could experience significant gains if fiscal stimulus exceeds expectations. He suggests that the risk-reward balance in the market has shifted favourably.
“Dips remain opportunities to buy, not to sell,” Efstathopoulos noted. “China has turned the corner – not through hope, but through resilience, innovation, and policy conviction.” This indicates a strong belief in the underlying strength and future prospects of the Chinese equity market.
