China’s stock rally is set to get a boost from small investors, stoking hopes that their massive savings will fuel the next leg of the market’s blistering advance.
The benchmark CSI 300 Index has been on a tear, rising 10% in August to be one of the world’s best-performing equity gauges amid a liquidity-driven surge. While hedge funds have been active in the market, analysts say the nation’s mom-and-pop investors are still in the early stages of what could be a major rotation into stocks and equity funds.