A shares may rise in coming weeks

Big jump in online shopping, talk of pension fund investments stoke hopes of a rebound

The A-share market is expected to recover from recent declines as investors are optimistic after latest retail data reflected robust sales growth, analysts said.

Seasonal consumption and strong expectations that pension funds will start investing in stocks may drive markets, they said.

The Nov 11 Singles Day online sales contributed significantly to consumption growth, according to data of the National Bureau of Statistics. E-commerce sales grew 30 percent year-on-year in November, amounting to 18.5 percent of total retail sales, up from 15.8 percent in the same period last year.

“While this sales festival has been ongoing for several years and therefore its existence itself should not necessarily impact the year-on-year growth of retail sales, it has been gaining importance and therefore still impacts year-on-year and seasonally adjusted sequential retail sales,” said Song Yu, economist with Gao Hua Securities in a research note.

Because an increasing number of listed companies in sectors like foods and beverages, clothing, jewelry, tourism and transportation are selling through both online and offline channels, many are benefiting from the seasonal sales surge.

Analysts said that last week’s US Fed rate hike could mean better prospects and stronger confidence in economic recovery, which would benefit retail and consumption-driven sectors in the long run, particularly trade and export businesses.

The move will also help make the A-share market more stable, with more institutional investors and value-oriented investors participating.” Dai Kang, analyst with Huatai Securities