SHANGHAI: China stocks started the week on a firm note on Monday led by robust gains for new energy vehicle firms, while strong foreign inflows also helped sentiment.
Leading the gains on Monday, the CSI new energy vehicles index jumped 5.7% after Huawei’s launch of automated-driving solutions on Sunday. “Driven by declining interest rates for the short-term and upbeat corporate earnings, the A-share market is expected to continue rebound,” Southwestern Securities noted in a report.
“The stock market will remain range bound and I don’t see a reversal. For now, that points to a continued uptrend, as valuations of many bluechips remain lofty which could take years for the market to digest,” said Niu Chunbao, chairman at Wanji Asset, a Shanghai-based private securities fund.