Mainland markets set for strong start to new year
Backed by signs of a solid economic recovery, stocks in the financial, infrastructure and agricultural sectors are likely to outperform the market ahead of the annual meetings of the legislature and the top advisory body next month, analysts said.
The mainland's stock markets are likely to make a bullish start to the Year of the Snake when trading resumes today, after a week-long holiday.
The Year of the Dragon ended with a 4.8 per cent gain in the Shanghai Composite Index, which reached 2,432.4 points on February 8, the last trading day, and it could approach the 2,480-point level, said Castor Pang, the head of research at brokerage firm Core Pacific-Yamaichi.
"The economic indicators released before the week-long holiday confirmed the recovery in the country's economy and this will be positive for the stock markets," Pang said.
The data showed strong export growth in January and revealed the mainland's economy was on track for a solid recovery, said Li Daxiao, a director of Shenzhen-based Yingda Securities.
"The economic recovery will continue to drive up the A-share markets this year, but investors should beware of volatility as the stocks have rebounded a lot," Li said.
The Shanghai Composite Index has surged 24.8 per cent since December, after hitting a year-low of 1,949 points.
