Chinese stocks have stormed higher in recent months on the back of stronger economic data, easy monetary conditions and supportive policies from Beijing, intensifying the debate over whether the infamous market laggard can finally break out of its multi-year slump.
The Shanghai Composite index has notched four straight weeks of gains, bagging an 8 percent rise in total. It's now up more than 12 percent from the lows in March and up nearly 5 percent since the start of the year. The benchmark index has finished in the red every year since 2010.
China bulls are holding steadfast to their calls for further gains for the year, with many citing the imminent launch of the Shanghai-Hong Kong Stock Connect, or "through train" scheme, in October.
The scheme, announced by Chinese premier Li Keqiang in April, will allow global investors, institutional and retail, to trade Shanghai 'A' shares via the Hong Kong stock exchange. At present, only institutional investors abroad with secured quota from the government can invest directly in China's domestic markets.
"China's mainland market is still looking attractive and the link-up should boost investments in the fourth quarter," said Dickie Wong, executive director at Kingston Securities, who expects the Shanghai Composite to rise another 10 to 15 percent before the end of the year.
"At present, China's A-shares, especially blue chip counters such as ICBC, CCB, Ping An and China Life are still are trading at a steep discount over H-shares so that should present good opportunities for investors," he said.