The model maps implied equity forwards onto index movements, capturing market expectations in forecast outcomes. Forecasts are generated via simulation, allowing a probability distribution to be constructed around the projected index path and enabling estimation of the likelihood that the index reaches or exceeds a given threshold over the forecast horizon.
|Date |Forecast (2027-06-30) |:----------|:--------------------- |2026-01-09 |340.26 |2026-01-20 |344.47 ± 6.80
Why do you think you're right?
The model combines historical trends with macroeconomic indicators to estimate the probability that China’s year-over-year GDP growth will meet or exceed 5% over the forecast horizon. To preserve asymmetry observed in the data, forecasts are generated via simulation, reflecting a range of plausible future paths and potential outcomes. Findings suggest that while domestic and international trade provide some support, investment trends limit upside potential.
Why might you be wrong?
While simulation-based forecasts improve its ability to capture asymmetric outcomes, the model remains sensitive to unforeseen events outside the sampling window.