China Stock Rally May End Without Reform, Alliance CEO Says

China’s new leaders need to push ahead with reform of state-owned companies to extend the biggest monthly gain for Chinese stocks in two years, according to the Shanghai government’s investment arm.

The new generation of Communist Party leaders headed by Xi Jinping needs to break the monopoly of government enterprises by introducing more competition and to ease financing for smaller companies to keep economic growth at about 7 percent to 8 percent over the next 10 years, Pang Yang, chief executive officer with the financial-service advisory unit of Shanghai Alliance Investment Ltd., said in an interview at a Bloomberg hedge-fund forum in Shanghai on Jan. 5.