A bull market has begun in some of China’s old and new economy sectors, indicating investors are seeing an upside to current valuations from President Xi Jinping’s measures to bolster the economy and markets.
A host of Chinese gauges have rallied more than 20% from their recent lows. The ChiNext Index tracking China’s growth stocks was the latest to achieve the milestone Monday, following in the footsteps of the CSI 300 gauges for telecom and info tech, a Goldman Sachs basket of renewable stocks, and MSCI Inc.’s benchmark for materials. The Hang Seng Tech Index came within 1% of hitting that mark on Tuesday.
