The Chinese stock market continues to be bullish. In the second half of the year, the Shanghai Stock Exchange and Hong Kong H rose 12.1% and 8.1%, respectively, to break above 3800 and 9300. China’s stock market rally has three drivers: easing uncertainty in the U.S.-China conflict, an influx of ample liquidity, political events and government policy expectations.
This year’s Chinese economy is expected to be undergoing a high-end pattern. The economy grew 5.3% in the first half of the year, but a slump in real estate and slowing exports are feared to put downward pressure on the economy in the second half. The manufacturing purchasing managers’ index (PMI) in August was 49.4, below 50 for the fifth straight month, while industrial production and retail sales growth were at 5.2% and 3.4%, respectively, the lowest this year.
Financial markets expect to strengthen…
