After lagging Hong Kong stocks by the most since 2008, Chinese equities are showing signs of catching up as valuations and optimism over policy support rekindle investor interest.
The onshore market had lacked momentum for months, while shares in Hong Kong rallied on the back of technology and new consumer themes. A nascent reversal is taking place in July, as investors bet on positive policy messaging from the Politburo meeting and more action following Beijing’s campaign to curb aggressive price competition in key industries.