China stocks are close to bull market highs after returning from Lunar New Year break

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China's onshore A-shares were hovering close to bull market territory on Monday, the first day after returning from the Lunar New Year holiday.

"The New Year bulls of China A shares have primarily been boosted by the stimulus monetary policy and reopening optimism," Tina Teng, analyst at CMC Markets, told CNBC in an email.

She added that supportive measures in the property sector and a loosened crackdown on China's tech companies fueled further gains. "Investors are shifting their funds from fixed-income to equity markets amid China's reopening progress," said Teng.Hao Hong, chief economist at GROW Investment Group, said China's excess household savings will support a continued rally in stock prices.

"We are at the inception of intense speculation. China's savings glut many [took] as a sign of extreme risk aversion can be the fuel for a spring rally," he said in a Sunday note. "As households start spending again and saving less, the economy will recover, and the market will respond," he added. "It is the Year of the Bunny, and the market has hopped back to life."

 

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Of course CNBC is all happy about this they bow to the CCP! Shameful

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