From CNBC:

Chinese stocks are expected to surge by 10% in the coming days due to the government’s support efforts. The Chinese securities regulator has also issued statements to boost investor confidence and announced state-backed purchases. Mainland Chinese stocks traded higher following gains on Tuesday after hitting a 5-year low on Monday.

Investor sentiment in Chinese stocks may have bottomed out, according to Clocktower Group. They forecast a 10-15% rally in Chinese equities in the coming days. However, the Chinese government’s willingness to prop up stocks doesn’t guarantee a sustained recovery, according to analysts.

Mainland Chinese stock markets will be closed for the weeklong Lunar New Year and will reopen on Monday, Feb. 18. The effectiveness of Chinese authorities’ interventions remains uncertain. Similar efforts in 2015 did not achieve their goals, and concerns linger about China’s future economic growth and policy focus.

Chinese stocks remain down for the year, following a 2023 marked by losses. Investor sentiment may have bottomed out, with forecasts of a 10-15% rally in Chinese equities. Concerns about the government’s ability to sustain a market recovery persist, given previous unsuccessful interventions in 2015.

Chinese authorities’ willingness to support stocks does not guarantee a sustained recovery. Mainland Chinese stock markets will be closed for the Lunar New Year and analysts’ concerns linger about the effectiveness of the government’s interventions. The effectiveness of Chinese authorities’ interventions remains uncertain, given similar unsuccessful efforts in 2015.



Read more: Clocktower’s chief strategist says Chinese stocks will likely rally 10%