According to China Asset Management Co, stocks of Chinese companies would rally in value as the government continues to find ways to augment the economic recovery of the country. The biggest fund manager of China announced yesterday while the Shanghai Composite Index fell 1.4% for a total drop of 3.9% in February alone.
While the Chinese president is still to be named, the full leadership of the central government is planning a top to bottom revamp in order to assist the economic recovery after nearly a two year economic slowdown.
China Asset Management has Rm246 billion or US$39 billion in assets alone. The world's second largest economy grew by 7.8% last year, its lowest since 1999. The last quarter of 2011 and the first month of 2012 saw accelerated growth, with the Shanghai composite rising 1.1% after a 20% surge in December and January. Overall, the Index has experienced a 17% gain since December 3.
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