Concerns over the state of the Chinese economy have started to loom again as the country's shares hit a seven-month high Monday on speculation of more stimulus from the Chinese central bank.
The country's blue-chip CSI 300 jumped 3.3 percent Monday, lifting sentiment across Asian stocks. While investors have heard nothing from the People's Bank of China (PBOC) officially, analysts are starting to predict that more easing could come soon.
"The Chinese bourses do not reflect the real economy much. Instead, they are driven by expectations of central bank policy and sheer speculation, much more than more mature equity markets," Holger Schmieding, chief economist at Berenberg Bank, told CNBC via email.
He explained that hopes for additional stimulus are driving the upturn. "The ups and downs of Chinese markets mean little for the economic outlook. While China is in a difficult transition, it still has all policy means available to avoid a hard landing for the time being. The PBOC will likely add some stimulus in coming months."