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Chinese brokerages bullish on stock market

0 Comment(s)Print E-mail Xinhua, January 21, 2013
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Chinese securities brokerages are mostly bullish on the country's stock performance in the near term due to favorable economic data and recovering investor confidence, a latest poll showed.

Shenyin & Wanguo Securities (SWS) told Xinhua on Sunday that the stock market will maintain a strong momentum as there are no foreseeable bad news for the market.

China's economy expanded by 7.9 percent in the last quarter of 2012, ending its deceleration for seven straight quarters, according to data released on Friday by the National Bureau of Statistics.

The stock market is entering a virtuous cycle, as capital supply for the market is sufficient and investor confidence are recovering, the SWS said.

The brokerage forecast that the recent rebound will continue in the near term. Since early December, the benchmark Shanghai Composite Index has surged more than 18 percent.

Other brokerages, including Huatai Securities and Minsheng Securities, are also optimistic about the market's short- and mid-term performances partly due to the economy's stabilization.

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