China's World-Beating Stock Rally Is Starting to Feel Different
- Economic data is driving gains in April, rather than momentum
- China’s government bonds poised for worst week since 2014
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China’s booming equity rally entered a new phase this week as economic data provided bulls with a fresh catalyst.
After signals from the Treasury market in March got the whole world panicking over global growth, equity investors were encouraged by data showing China’s factory sentiment stabilized. They took it as evidence that the economic slowdown may not be as bad as feared, which in China sent the Shanghai Composite Index to a fresh high for the year. Hong Kong stocks also got a lift, entering a bull market and matching their best streak in a year. The Hang Seng Index briefly rose above 30,000 points on Thursday.