Stock prices in mainland China are recovering from five-year lows, and it’s starting to look like the Chinese government is ready to take action. At least, that’s the view of Marko Papic, chief strategist at Clocktower Group. Last week, he said he thought Chinese stocks could rise more than 10% in the near term in the coming days, based on a Bloomberg report that Chinese President Xi Jinping may meet with financial regulators. told me. But what Papic is focusing on in the market is the rise in Chinese government bond yields. “One of the best deals in Chinese assets is long-term bonds, which are among the best performing in the world,” Papic said. “My question is, will I recover? [the] “Will China’s economy and stock market end the multi-year rally in Chinese bonds?” he said, adding, “Global bond investors have something to think about. I understand that [it’s a] bottom [in the] When yields rise, bond prices fall and vice versa. According to Wind Information, China’s 10-year government bond yield is hovering around 2.6%, compared to just over 4% for U.S. Treasuries. If yields on Chinese government bonds start to rise, Papic said, it “likely signals investor rotation. It remains to be seen whether these investors are ready to buy stocks.” “The Shanghai Composite Stock Price Index closed up more than 1% on Thursday, helping the index recoup some of its 2014 losses on the final day.” Stock markets in mainland China are closed and will not reopen until Monday, February 19th. “As long as the economic recovery continues, we believe China will need to address core investor concerns, including the real estate sector/economy and US-China relations,” Nomura Research analysts said in a note Wednesday. Ta. If market sentiment remains weak, we expect there will still be room for foreign capital to invest. Selling mainland Chinese stocks and Hong Kong stocks. Consumer price data released on Thursday was not encouraging, showing demand, including in sectors such as travel, remained weak for another month. Thursday’s stock market rally also followed news late a day earlier that the Chinese government announced it would fire Yi Huiman, head of the Securities Regulatory Bureau, and replace him with Wu Qing, who previously supervised the Shanghai Stock Exchange. For the Eurasia Group, these changes were a predictable result of Xi’s high-level involvement. Analysts say Chinese authorities began rolling out a strategy to shift domestic investment into equities earlier this year, telling consulting firms in advance that “changes will be needed in both the macro environment and the profitability of listed companies.” He admitted that. . “But by January, many of these same actors had become wide-eyed that the leadership instead continued to focus on propaganda, security, and administrative control.”・The group’s analysts stated in the report. “These policy signals reinforce the Eurasian Group’s hopes for a continuation of a progressive approach to economic and growth policy and tighter regulation of financial activities.” The market will continue to debate this even after we return from vacation. The Hong Kong Stock Exchange will be closed only on February 12th and 13th due to public holidays. “After short-term liquidity risks have eased for the time being, investors will refocus on inflation and housing market trends this year, watch for a recovery in earnings, and look for macro policy signals,” UBS equity strategists said in a note on Wednesday. There is a possibility of analyzing the Their picks for the top A-shares in mainland China include solar power supplier Sungrow, semiconductor equipment maker Naura Technology (both listed in Shenzhen), and Tesla, which is listed in Shanghai, with the biggest expected gains. Auto parts supplier Tuopu. Analysts at UBS predict that Sungrow’s share price could more than double from Tuesday’s levels, while Tuopu’s share price could rise by 90% and Naura Technology’s share price by more than 50%. are doing. —CNBC’s Michael Bloom contributed to this report.