China Stocks Are at a Support Line That Preceded Epic Rallies
Pedestrians walk past the Bund Bull statue in Shanghai.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
Chinese stocks are trading at a key support line previously seen just before two of the steepest rallies in the market’s history. The Shanghai Composite Index more than doubled in both 2005 and 2014 after falling to that trend line. Stocks may continue to find a floor here if earnings look solid and fiscal and monetary polices provide support, said Lv Changshun, a fund manager at Beijing Dajun Zhimeng Investment Management Co.