Salient to Investors:

Mao Sheng at Huaxi Securities said investors see a clearer direction and roadmap for government reforms.

The OECD said as many as 300 million people will move from the countryside to the cities by 2030. The proportion of China’s population in cities rose to 51 percent by the end of 2011 versus 39 percent over the past decade.

The Shanghai index trades at 11.2 times reported earnings versus its record low of 10.9 on Nov. 30. Last week the number of Chinese stock accounts dropped by the largest amount since the week ended July 8, 2011.

Tao Wang at UBS expects corporate earnings and the economy to recover in coming quarters as destocking ends and output prices recover.

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