JPMorgan Says China’s Crackdown on Overcapacity May Boost Stocks

Policies in China that are aimed at curbing excess capacity may be positive for equities and global trade if executed right, according to JPMorgan Chase & Co.

Companies that are sector leaders, especially those involved in new energy vehicles and property, are likely to benefit from stronger pricing, higher revenue market share and healthier margins, strategists including Wendy Liu wrote in a note Wednesday.