Barclays to BlackRock Say the China Rebound Rally Won't Last
- Central bank cuts interest rates for sixth time since November
- Biggest U.S.-traded A-shares ETF rallies most in two months
PBOC Lays Stimulus Base for China's Five-Year Plan
The rebound in Chinese equities spurred by the government’s efforts to boost growth will probably fade as the measures underscore fundamental weakness in the world’s second-largest economy, according to Barclays Plc, Blackfriars Asset Management Ltd. and BlackRock Inc.
A $582 million exchange-traded fund tracking mainland stocks jumped to a two-month high in the U.S. on Friday as the People’s Bank of China, after the close of local trading, announced its sixth interest-rate cut since November. The gain pushed the advance from this year’s low in August to 23 percent. The rebound has been driven in large part by speculation that the government will move more aggressively to bolster an economy projected to expand in 2015 at the slowest pace in a quarter century.