Analysis-Investors temper pessimism on China, but bullish tilt remains distant prospect
On the economic front, industrial output and retail sales growth also beat forecasts in August.
"The problem at the moment is that portfolio managers' perceptions are in this painful transition phase -- they have suffered too many full storms on a recovery in Chinese equities, which are ultimately disappointing," said Alex Redman, chief equity strategist at CLSA.To be sure, the country's beleaguered property sector, for one, remains a huge overhang, with major developers like Country Garden and Sino-Ocean teetering close to default.
"The market is likely to have long-term upward momentum only when the economy stabilises, corporate earnings recover, and foreign investor sentiment toward China assets improves meaningfully."Others have meanwhile sought out opportunities in markets outside of China, but that trend is showing signs of ebbing. A rush of money into India, for example, slowed in August.
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