From Nasdaq:

Chinese stocks have made a significant recovery, driven by speculation about potential government intervention to support the market. An analyst believes a bullish upswing is imminent based on technical indicators and market data.

Adam Turnquist, LPL’s Chief Technical Strategist, identified positive technical trends, such as the China Shanghai Composite Index rebounding from 2020 pandemic lows. He also pointed to extreme oversold conditions and the surge in ETF inflows.

However, Turnquist warned that predicting market bottoms, especially in China, is risky due to government policy influence and uncertain economic conditions. Nonetheless, a recovery in the Chinese market could be beneficial for U.S. investors.

American investors have shown interest in trading opportunities in China, with positive U.S. investment inflow into Chinese stocks and bonds. A potential recovery by Chinese stocks could also benefit U.S.-listed Chinese companies like Alibaba, Baidu, and JD.com.

Turnquist’s view will be put to the test when the Chinese stock market reopens on February 19 after a weeklong New Year holiday. The iShares MSCI China ETF ended Thursday’s session down 1.82% at $37.29.

Overall, the recovery of Chinese stocks is important to global markets, businesses, and investors, as it could signal positive trading opportunities and economic growth. China’s economic potential and influence on global manufacturing and GDP underscore its importance in the world economy.



Read more: Is China’s Stock Market Poised For A Turnaround? Analyst Points To 3 Promising Signs Amid Policy Shifts