London‑based Eurizon SLJ Capital says Chinese equities could rally 10% before year‑end as Beijing’s supportive stance lifts valuations. CEO Stephen Jen and economist Joana Freire argue that dovish regulation has revived investor confidence, setting the stage for solid earnings growth and could spur capital inflows from overseas funds.

The note points to a 5% to 10% earnings expansion as property deflation eases. Supply contraction and a tentative demand rebound, coupled with households’ deep savings buffers, are seen as fresh fuel for the market. Analysts cite these trends as evidence that the real‑estate sector is stabilising.

Investors have priced China’s market at a discount relative to peers, making the projected upside attractive. Eurizon’s forecast relies on the assumption that regulatory tightening will remain limited and that credit conditions improve for developers. A modest rise in consumer confidence could also lift retail‑oriented stocks.

For fund managers, the outlook suggests re‑balancing allocations toward Chinese large‑cap names while trimming exposure to over‑levered property firms. With earnings growth on track and valuation gaps narrowing, the potential 10% gain offers a tangible return target for portfolios seeking emerging‑market alpha and a hedge against slower growth elsewhere.