(Bloomberg) — A four-week rally in Chinese equities is set to culminate in a bull market when trading resumes Monday, as a rebound in consumption galvanizes the shares.
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The CSI 300 Index may extend its 19% rise from an October low when traders return after a week-long Lunar New Year break, with travel and box office data signaling that consumer spending is on the mend. Hotel operators and restaurant chains will benefit, as well as travel firms and entertainment-related names.
A sustained uptrend may dispel any lingering doubt that the worst is over for Chinese equities, after previous rebounds were cut short by surging Covid cases. The rollback of virus curbs and a policy pivot by Beijing have won over Wall Street banks such as Morgan Stanley which expects China’s equities to beat global peers in 2023.
The gains are likely to “sustain as the economic recovery will continue throughout 2023 and investor positioning has yet to be replenished after the…
2023-01-28 20:00:00 Bull Market Beckons China Stock Traders as Consumption Revs Up
Link from finance.yahoo.com With Chinese stocks witnessing a bull run in the past three years, investors have been flocking back in droves as economic growth has reinvigorated and swift reforms have been implemented that promise to drive China’s markets even higher.
While the performance of China’s stock markets in the first half of 2019 recorded lackluster performance, the Shanghai Composite Index has been on a steady uptrend over the past three months. Indexes hit record highs and businesses have seen strong year-on-year growth due toincreasing consumer spending.
The China Securities Regulatory Commission (CSRC) has played a significant role in advancing the country’s stock markets by introducing innovative features and ensuring a safe and stable environment for investors. In addition, the CSRC has allocated funds to help boost trading activity, ease restrictions on foreign investment, and encourage companies to list on the exchange.
As household consumption continues to power the economy, China’s stock market is positioned for a strong bull run in 2020. Consumer sentiment is high and investors are eager to tap into domestic growth at a time when China’s larger trading partners such as the US and Japan are slowing down. This is expected to drive Chinese stocks higher.
In spite of uncertainties surrounding the global economy, China’s stock market is proving to be a resilient engine of growth. Analysts have expressed optimism regarding the market’s outlook, citing its accessibility and robust equity base.
With earnings continuing to impress and economic indicators remaining resilient, China’s stock market looks set to remain in a bull market. Investors who are keen to capitalize on the growth opportunities should look to capture the upside potential that this engine of growth has to offer.