China Stocks Bottoming Out

The four-year low that the Shanghai Composite index reached in June marked a bottom for Chinese shares and the rally will continue, said Raymond Chan, Allianz Global Investors’ chief investment officer for Asia Pacific.

“I don’t see much downside” in Chinese stocks, Chan, who helps manage $409 billion at Allianz, said in an interview at Bloomberg’s headquarters in New York yesterday. “China can continue to deliver the growth, maybe a slower growth, but it’s not going to crash.”

The Shanghai stock benchmark has rallied 15 percent since June 27 to a three-month high, while the Bloomberg China-US Equity Index of the most-traded Chinese stocks in the U.S. surged to the highest level in 16 months yesterday in New York. Government data this past week from exports to industrial output for August exceeded economist estimates, signaling a recovery in the world’s second-largest economy.

Bloomberg

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