China's Inflationary Sweet Spot Propels Rocketing H Shares
- Price gains to boost profits, without triggering PBOC action
- Record loans propel banks, show limits of money-market curbs
China's Credit Surges to Record High
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The bullish indicators just keep piling up for Asia’s best-performing stocks.
Chinese shares listed in Hong Kong have roared back to a 15-month high, bolstered by signs the central bank’s money-market tightening is yet to impact bank lending, with a gauge of new credit at a record in January. H shares, which are racking up their best start to a year since 2012, are also seeing support from another corner -- inflation. Analysts say price growth is in the so-called Goldilocks zone, providing a tailwind for equities that have seen recent profits dogged by concern over China’s economy and the yuan’s retreat.