Fidelity, abrdn See China Congress Giving Stocks Their Mojo Back

The breathtaking rally in Chinese stocks since November hit a wall in recent weeks, prompting investors to debate whether the reopening momentum has run out of steam. Photo: Bloomberg

(Bloomberg) — Global fund managers are pinning their hopes on China’s upcoming political meeting to resuscitate a rally in the nation’s stocks, expecting pro-growth policies to drive a second leg of the reopening trade.

The National People’s Congress in March may prove to be the next catalyst, with abrdn plc and Fidelity International seeing China’s leadership displaying renewed determination in supporting growth. The consumer sector will be a key beneficiary, they say, as more than $800 billion of pandemic excess savings and a recovery in income will fuel private spending.