China’s A-share market is showing bullish signs, as three major stock indexes simultaneously made significant gains.
Some analysts say that the A-share market may have passed its most difficult period, and the current strong performance could continue into the middle of March, The Paper reported.
As of the close of Wednesday, the Shanghai Composite Index rose 1.84%, the GEM index rose 1.91% and the Shenzhen Component Index rose 2.01%.
Kou Wenhong, executive general manager in the research department at Zhongrong Fund, thinks February is a great window for the market to rise, because listed companies’ Q1 performance won’t be released till April, and economic data such as industrial output, investment and consumption will not be published before mid-March.
Shi Minjia, a manager at Haifutong Fund, believes the recent upward trend is a correction following overly-pessimistic market sentiment in 2018. Last year, a lot of stocks fell by more than 60% to 70%, and many even fell below net assets per share. Such a low valuation is very attractive to investors.