China Herald: Volatility to remain for next 3,4 months

Shaun Rein

While the Chinese stock markets did not plunge after trade resumed after the Chinese New Year, business analyst Shaun Rein expects the markets to remain volatile for the next 3 to 4 months, he tells Money Control.

Money Control:

Shaun Rein, managing director at China Market Research group feels the Chinese markets will remain volatile for 3-4 months, although they have opened up relatively stronger after the Chinese new-year break.

Rein says, the sentiment has improved post the new-year break with fewer mass layoffs and certain conducive policy initiatives from the Chinese government like lower mortgage rates for first-time home buyers.

"Certain cohesive and intelligent policy moves by the Chinese government have created confidence but, we may not necessarily see a boom straight through. There may be volatility for some time," he says.

On the pegging of yuan at its lowest rate since January 7, Rein says, the government is looking to shake out the short sellers, but the pressure will ease off in few weeks.

More at Money Control.

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