Guosheng Steel: Fiscal Support to Underpin Demand, Valuations Attractive

Bullish · $600019.SS · $600282.SS · $000932.SZ · $600507.SS · $600782.SS

What Happened

Guosheng Securities' steel team published a note arguing that rising US Treasury yields are pressuring metals' financial attributes, but Chinese fiscal spending will support steel demand in Q4. The broker recommends accumulating quality steel stocks after the recent market pullback.

Bottom Line

Guosheng Securities is bullish on Chinese steel stocks, citing fiscal support for demand and attractive valuations after the recent pullback.

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