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Analysts from Essence Securities said that companies closely related to economic cycles will play a leading role in sustaining the bullish trend on the A-share market. Companies in sectors like home appliances, automobiles, nonferrous metals, coal and securities are likely to be in demand, they said.
Analysts also said China is entitled to make adjustments to the methodology of setting the yuan's reference rate.
Analysts said the better-than-expected growth in spite of the pandemic can be attributed to the Chinese government's sharp and sustained focus on keeping the wheels of the world's second-largest economy turning, through prudent, textbook-compliant yet imaginative fiscal policies.
And that last comment explains a lot. A Hill-HarrisX poll conducted earlier this year found that a majority of Americans aren’t interested in tougher regulations for big tech companies.
Analysts said multiple factors could limit government plans to boost economic growth, such as if there are difficulties aggressively lifting the fiscal deficit.