American International Group, I (AIG) stock forecasts.

Summary

After a three-year downturn, the Chinese stock market has revived in the past month. At one point the price rose by 45% before a period of profit-taking occurred. Looking ahead, a question arises. Will the rally have legs? The economic trends in China should certainly be watched (closely) and will go a long way in supporting stock market momentum. China now has an economy of $18 trillion and represents just under 20% of the global economy. China therefore makes a crucial contribution to overall global economic growth, even if it grows ‘only’ by 4% to 5%. In fact, 4% growth in the Chinese economy today adds more to global output than the 10% growth of a decade ago, when China was growing faster but smaller. The latest rally in the Chinese stock market was triggered by a series of events. The People’s Bank of China cut interest rates, relaxed reserve requirements for banks and lowered the cost of existing mortgages. It also unleashed plans to provide more capital for institutional investors to buy shares and for companies to buy back their own shares. It did not rule out the launch of a sovereign wealth fund dedicated to the purchase of local shares. And t