Chinese Stocks Begin to Rebound: Analyzing the Winning Strategy

Chinese Stock Market Sees Rare Upward Trend, but Clarity Still Lacking for International Investors

The latest positivity around Chinese markets doesn’t yet offer the kind of clarity most international investors are looking for to move beyond selective plays. Chinese stocks ended the week with four straight days of gains — a rare upswing after a dismal start to the year. A combination of official rhetoric, monetary policy moves and media reports helped support the turn higher from multi-year lows. “The litmus test for a more sustained recovery in shares would be sequential improvement in economic data,” David Chao, global market strategist, Asia Pacific (ex-Japan) at Invesco, told me Thursday. “I think the bar might be higher this year given the past few years of underperformance.”