Chinese equities have enjoyed a 4 week-long rally which has a bull market beckoning as China stock traders return to work this morning. The latest data has shown that consumption has rebounded strongly as the country reopens suggesting a sustained economic recovery has commenced, clearly good news for stocks after their 41% plunge from early 2021 highs. This is one upside move we would not fade as Beijing usually gets its way and they want a return to growth.
- The Chinese index looks destined to initially test the 4300 resistance area over the coming weeks/months.
MM is bullish on Chinese stocks through Q1
