Chinese stocks look poised for a strong open when onshore traders return from the Lunar New Year break, with buoyant travel and tourism data seen bringing much-needed relief to one of the world’s worst-performing major markets.
With trading in mainland China shut February 9 through 16, investors is likely to take cues from gains seen for the country’s shares listed offshore. A gauge of stocks in Hong Kong rallied nearly 5 per cent since it reopened on Wednesday, while the Nasdaq Golden Dragon China Index jumped 4.3 per cent for the week, underscoring room for onshore shares to play catch-up.
Spending patterns during one of China’s most important holidays suggest consumption has revved up even as the broader economy struggles with deflation and a property crisis. Market watchers expect the stream of positive data to give equities at least a short-term boost, lending a helping hand to authorities’ efforts to revive investor confidence.
A big question, however, remains on the…
