China Stocks to Extend Rally on Recovery, Citic Says

(Bloomberg) -- China’s stocks may extend this year’s rally as the nation’s economic recovery strengthens and earnings improve, according to Citic Securities Co., the nation’s largest brokerage by market value. The Shanghai Composite Index is up 69 percent this year as a $586 billion stimulus package and record lending drove China’s rebound from the deepest economic slump in almost a decade. Data due Oct. 22 will show the economy expanded 9 percent in the third quarter, the fastest pace since September 2008, according to the median estimate of economists surveyed by Bloomberg.

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