Western stock markets have been experiencing a sucker's rally, but the Shanghai market might be the real thing, Robin Griffiths, technical strategist from Cazenove Capital, told CNBC.
Western stocks have been struggling during the “so-called Honeymoon period” after US President Barack Obama took office and the market is “hanging in there by its fingernails, trying to go up,” Griffiths said.
“The Shanghai market actually had a vicious bear (trend) and then it bottomed back in September and this is now a pattern of rising highs and lows, making new progress and clearly come out of the old downtrend,” he said.
The Chinese economy has to get away from only making exports for the Western world and into stimulating its own domestic economy with infrastructure projects like railways and developing its farming sector, Griffiths said.
Investors are buying into the hope that China, along with India, can stimulate the Asian region by developing its economy, he added.
Watch the full Robin Griffiths interview above.
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