Chinese stocks on the rise: analysis shows possible upswing in the second quarter.

Chinese stocks on the rise: analysis shows possible upswing in the second quarter.

Chinese stocks rising after holidays

After the holiday, Chinese stocks posted further gains, supported by positive economic data. The Hang Seng China Enterprises Index rose 2.6 percent, while the Hang Seng Tech Index rose 1.9 percent. These gains have convinced some market participants that Chinese stocks have bottomed out and that policy support is enough to stimulate the economy.

Outlook on the Chinese stock market

According to Dickie Wong, head of research at Kingston Securities, equity markets in China and Hong Kong have already bottomed out and could continue to rise in the second quarter. However, cheap valuations and still light investor positioning require additional policy catalysts to improve sentiment.

Expert statements and market assessments

Wong emphasizes that the valuations of Chinese stocks are really attractive and that the purchases should be made when the market is generally negative and prices are low. These positive assessments are in line with growing optimism among some market participants who expect a turnaround in the Chinese stock market.

Conclusion and outlook

Recent price gains and positive economic data suggest that Chinese stocks may be on the verge of a turnaround. A potential recovery in the second quarter could mean a continuation of the upswing in China's stock market, provided policy support and positive signals are maintained.