Rally Forecasts
“We’re definitely going to have a major bull market ahead,” Jerry Lou, the chief strategy officer at Morgan Stanley Huaxin in Shanghai, said in an April 24 phone interview.
Lou, who advised buying stocks five days before the Shanghai Composite’s last bear market ended on July 5, 2010, says the index may rally another 30 percent this year as lower reserve requirements boost bank shares. The gauge may hit 2,800 by the end of the second quarter, Shi Weixiang, a strategist at Guotai Junan, said in an April 24 phone interview. The brokerage predicted as early as March 2010 that stocks would bottom around July of that year.
Sandy Mehta, the chief executive officer of Value Investment Principals in Hong Kong, said he favors property companies, automakers and commodity producers. Mehta forecast the second-half rally in 2010.
