Chinese stock market ‘could rally by 20%'

The Chinese equity market could rise 20% in the coming months as the government once again moves to support the economy, said Capital Economics' China specialist Mark Williams.

Williams said the Chinese economy is still on course for a soft landing despite figures published last week showing economic growth has tempered. Data from the National Bureau of Statistics showed China’s annual growth rate had slowed from 10% to 9.5% between the second and third quarter. He predicts 8.5% growth next year and forecasts a strong rally within Chinese markets following government intervention to improve credit conditions and support growth.   “Once it is clear inflation has peaked, the government will start introducing measures to support the economy. We expect it to lo...