Rally in Chinese stocks 'has legs'
SHANGHAI - This month's rally in Chinese stocks "still has legs" as the nation's economic growth exceeds expectations and the world avoids a double-dip recession, said Michael Yoshikami, investment strategist at YCMNet Advisors.
The Shanghai Composite Index has jumped 13 percent since the end of September, the most among 89 benchmark gauges tracked globally by Bloomberg. Gains have slowed since China raised borrowing costs on Oct 19 for the first time since 2007 as policymakers sought to avert an asset-price bubble. The stock index slid 1.46 percent to 2997.05 at the 3 pm close on Wednesday.
October's gains by the Shanghai Composite have been "pretty incredible", Yoshikami, who oversees about $1 billion at Walnut Creek, California-based YCMNet, said in a phone interview on Wednesday. "While it can't continue to rally as we have seen, it still has legs."
