Yes. I said a month ago that the Chinese markets looked good but I personally didn't follow through on it. They are up over 10% since then and have today broken through some key technical levels. I suppose many believe that the PMI's over the past week or so have shown some signs of bottoming out and it's hard to argue against that. Today's Composite PMI ( private gauge ) came in at 49.9 just in contraction territory but better than 48 level expected by economists. Same story, Services Sector still positive but manufacturing in contraction but less than expected.
Personally, it's no surprise given that the PBOC has cut rates 6 times this year, reduced the bank lending rate a couple times less and the Government is spending like a drunken sailor. The thing is will it stick and can the Government save from the economy from a hard landing. I'm not so sure they can but it will be months before we have any clue and meanwhile the stock market will probably rally in anticipation of stabilised growth. Although it's hard to know with the Chinese index it's up over 4% today but as it's T + 1 day settlement there any day trader will probably sell tomorrow into a morning bounce.
