Markets bloom again as wary investors return

Chinese investors seem to have developed an appetite for stock market investments again, going by the 13 percent rise in new account openings last week. This is the biggest weekly jump in the last few months, despite the over 10 percent fall in the benchmark Shanghai Composite Index.

The improved investor sentiment can largely be attributed to the bullish forecasts from economists and government officials. They have indicated that China's economy would recover well ahead of the global trend, which still is languishing.

Several indicators of the Chinese economy, such as industrial output, have already shown initial signs of an upward adjustment after declining in November. Optimists have even indicated the recovery could start from the second-half of this year and soar from next year onwards.