China’s Top Stock Fund Sees 15% Rally on Graft Crackdown

China’s anti-graft drive has gotten Cheah Cheng Hye more bullish on mainland stocks than at any time since valuations plunged in the global financial crisis six years ago.

The chairman of Hong Kong-based Value Partners Group, which runs the best-performing Greater China equity fund during the past five years, is predicting a further gain of about 15 percent for the Shanghai Composite Index by year-end. While President Xi Jinping’s anti-corruption measures may be a short-term drag on growth, they will make state-owned enterprises more efficient and help curb excessive debt, he said.