China's economy appears increasingly set to avoid a "hard landing" and that could help push the country's stock markets higher for the rest of this year, according to Stefan Hofer, chief investment strategist at LGT Bank.
Fears for a slowdown in the world' s second largest economy swelled in 2018: Growth slowed to its worst pace in 28 years and equities tanked amid pessimism stoked by worries over escalation in the trade war between the United States and China.
But market sentiments turned substantially this year, with Chinese stocks soaring, the economy showing signs of hitting bottom and optimism building over a resolution to the tariff conflict.
"One of the more frightening tail risks that have been on investors' radars is the idea of China having a hard landing," Hofer told CNBC on Monday. He noted that they have since focused their attention on whether such an outcome can be avoided.
"And it looks like, basically, that they are getting there," Hofer said of China, citing recent data such as an upturn in manufacturing.