A-Shares To Take The Lead With Chinese Economy Recovering-Daily

Foreign investment will continue to flow into the Chinese stock market as A-shares tend to lead with economic recovery into the second half of the year, the Securities Daily reported citing major foreign financial institutions. The current sentiment in the A-share market has been significantly repaired with liquidity gradually loosening, and its downside risk is less than that of other global markets, the newspaper said citing investment officers from the above institutions. China’s recovery trend is clear and Beijing may add at least CNY1.5 trillion of incremental fiscal funds in H2, either by front-loading next year’s quota of local government special bonds, or asking state-owned enterprises to hand in more profits, the newspaper said citing economists.