After falling more than any other leading Asian equity index in 2010, the Shanghai Composite has jumped almost 9 per cent this year – making it the region’s best performer.
The new optimism of Chinese investors is underpinned by the increasingly widespread belief that the government has won, or is close to winning, its battle against rising inflation.
That idea will be put to the test on Friday when Beijing releases a treasure trove of statistics on the economy, including gross domestic product for the first quarter and inflation figures for March.
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