The government is expected to launch a series of capital investment projects related to its urbanization programs, most likely spearheaded by investment in the transportation system, Li said.
A market report from brokerage firm Nomura said that since its Jan 30 peak, the MSCI-China Indices — which consist of a range of country, composite and non-domestic indices for the Chinese market — has corrected by 12 percent, and many individual stocks have corrected twice or more against the benchmark average.
Faced with current lower expectations, Nomura said it anticipated the MSCI-China would bottom out and start a trading-range rally in the rest of this month and May.
"Actually, the 7.7 percent GDP growth in the first quarter was not bad. It was just below expectation," said Wendy Liu, managing director and head of China equity research at Nomura.
Liu added that experts have been pricing in tightening risks based on the expectation of higher growth rates, meaning a discount in stock market valuations.
With slower growth and lower-than-expected inflation, that risk was being pushed out, she added.
A survey released by HSBC on Monday showed that 57 percent of Chinese fund managers were bullish about emerging economy stock markets in the second quarter, up from 29 percent in the first quarter.
China’s weekly story
(2013.4.13-4.19)
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