Zhìtōng Cáijīng APP noticed that Stephen Jen of Eurizon SLJ Capital stated that investors should continue to follow the recent stimulus plan driving the Chinese stock market and the appreciation of the Renminbi, as well as the downward trend of Chinese bonds. The SSE Composite Index once broke through 3200 points after opening on Monday, and as of the time of publication, rose by 4.02%, closing at 3211.61.

Jen stated in a report to clients last Friday: "Investors have very low holdings of all Chinese stocks, and the Chinese stock market is severely undervalued, so a significant rebound is entirely possible."

Last month, Jen stated that with the US rate cuts, Chinese companies may be forced to sell USD 1 trillion worth of USD-denominated assets. Before this, investors like billionaire David Tepper expressed optimism about China after the Chinese government introduced comprehensive stimulus measures.

Policy easing measures drove the CSI 300 Index to its largest increase since 2008 last week. However, in Bank of America's September survey of global fund managers, 19% of respondents stated that 'shorting Chinese stocks' was one of the most popular trades.

Jen stated that as China increases stimulus measures while the Fed cuts rates, and with oil prices remaining low, risky assets 'should perform very well'.

He added: "After the US election, I expect global stock markets to rally strongly by the end of the year."

Jen, the founder of the "dollar smile" theory, believes that when the US economy is booming or in deep recession, the dollar will appreciate. He predicts that as the US inflation rate slows to zero and the world's largest economy But after the bursting of the internet bubble and the Fed's rate cut in 2001, the ROI dropped by more than 10%.Jen mentioned the impact of Chinese asset repatriation, stating, 'Imagine an avalanche, the renminbi will appreciate, and it is likely to be allowed to appreciate - 5% to 10% is moderate and acceptable for China.'