Optimism is growing that China’s recovery will gather further pace after two key cities of Hangzhou and Xian scrapped all restrictions on home purchases, and both imports and exports beat projections last month. A Politburo meeting chaired by Communist Party boss Xi Jinping at the end of April vowed to tackle the crisis on the property market.
“The recovery in China’s fundamentals is continuing and corporate earnings are bottoming out,” said Song Yiwei, an analyst at Bohai Securities in Tianjin. “Meanwhile, expectations that the Fed will cut interest rates in September have been growing. All these factors are driving re-rating of Chinese stocks.”
The Hang Seng Index has extended its world-beating run since April, and has risen 6.8 per cent this month, as mainland China’s securities regulator pledged support by expanding the exchange…
