Optimism Grows China Stocks May Break First-Day NPC Losses on AI

(Bloomberg) — As Chinese officials gather for the biggest political huddle of the year, equity investors are optimistic this time will be different.

The MSCI China Index declined on the first trading day of the National People’s Congress for the past five years, falling between 4.5% and 0.3%. But newly found hopes for the nation’s tech industry and the private sector have changed the equation. The gauge has gained 21% from a low in January, and investors are betting there’s more to come.

“This time, the driving narrative is no longer just the next conference or what the government is going to do, but the recovery in the private sector,” said Andy Wong, head of multi asset Hong Kong at Pictet Asset Management. “This is healthier.”

–With assistance from Alan Wong.