Eighteen months into a grim bear market, China's battered investors have recently been offered cheer with a hardening rally that goes against the grain of world markets.
Adding to the enthusiasm is the belief that this time could be different, with a new breed of investors driving performance.
'The latest rally is far more rational than the rise and fall of the stock market in previous years,' CLSA's Shanghai-based analyst Lance He Lang said.
The rally has seen domestically traded A shares, accounting for most of China's approximately 1.3 trillion market, surge since the start of the year, with the Shanghai A share index rising 18.1 per cent and its Shenzhen counterpart 14.1 per cent.
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Market players attribute the bounce to institutional buying after an unexpectedly strong increase in economic growth and improved corporate earnings. Strong fundamentals have provided a strong base for recovery from heavily sold levels, say bulls.
