China: New Year, New Opportunity?
China will release its first quarter 2015 gross domestic product (GDP) report this week on April 14, 2015, with the market expecting a 7% yearover- year increase. Regardless of whether China hits that target, its stock market has already been positive so far this year. In this year of the goat in 2015, global investors have not been sheepish about buying Chinese stocks, powering the Shanghai Composite 25% higher so far in 2015 amid prospects for more monetary stimulus and policy reforms. These gains came on top of last year’s solid performance, when the Shanghai Composite surged 49%. The recently launched trading link between mainland Chinese markets and Hong Kong and low oil prices have also been factors, all of which beg the question: Will this strength continue?