China's Stock Surge Puts World-Beating Bond Rally in Shade
- CSI 300 Index, Shanghai Composite Index enter bull market
- More analysts are suggesting investors to pile into shares
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A surge in equities is blunting the attraction of China’s world-leading bond rally, prompting analysts to recommend clients pile into stocks rather than debt. News that the U.S. will extend a tariff truce is likely to fuel that momentum.
The rally since Jan. 3 has added more than $1 trillion to the value of the country’s equities, while China’s sovereign notes have barely moved. Though both stocks and bonds benefit from potential policy loosening, stocks got an extra boost from easing trade tensions and now look cheap after the worst plunge in a decade last year. More analysts are touting equities over debt, with Huachuang Securities Co. saying the latter may decline in coming months as risk appetite strengthens.