China's smallcap stocks are about to enter a bull market
The ChiNext Index rose 1.2 per cent Thursday, taking its rally to 19.3 per cent.
By Bloomberg | Updated:
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Closing more than 20 per cent above the June low would mean the ChiNext gauge meets the threshold for a technical bull market.
By Fox Hu
China’s small-cap stocks are nearing a bull market.
The ChiNext Index rose 1.2 per cent Thursday, taking its rally since a June 6 low to 19.3 per cent. Investors have piled into technology shares, which dominate the gauge, on hopes for further monetary easing and renewed trade talks between Beijing and Washington.
Closing more than 20 per cent above the June low would mean the ChiNext gauge meets the threshold for a technical bull market. The gauge entered a bear market in June after it fell more than 20 per cent from an April high.
Wuhu Token Science Co. and Shenzhen Sunway Communication Co. are among leading gainers among ChiNext members this quarter, each having surged more than 45 per cent since the end of June.
