From Yahoo: 2024-05-21 21:06:00

Chinese stocks are on the rise, with the MSCI China Index surging 29% since January. Over half of its members are now above the 200-day moving averages, signaling an expanding rally. Consumer tech and financial firms are leading the recovery, with other sectors expected to follow suit.

Investors are optimistic about small- and medium-cap stocks benefiting from the rally. Previous advances in the Hang Seng China Enterprises Index suggest further gains ahead, with buy-rated stocks like Air China and Alibaba offering over 30% upside. Geopolitical tensions remain a risk, but Wall Street brokerages are increasingly bullish on China’s market outlook.

The rebound in Chinese equities is seen as an inflection point for growth and asset price recovery, according to BNP Paribas Asset Management Asia Ltd. Selective tech and property stocks could see good rebounds as sectors broaden to participate in the market recovery. Upside opportunities exist for investors looking to pick up shares after recent gains.



Read more at Yahoo: China’s Improving Market Breadth Is Good News for Stock Bulls