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(Bloomberg) -- UBS Group AG Chairman Axel Weber said fund inflows from overseas investors and domestic money diverted from real estate to equities will continue to drive gains in China’s stock market.
Those two trends “continue to be intact” and will support equities, Weber, 57, said in an interview from Shanghai with Bloomberg Television’s Rishaad Salamat today. Still, he signaled stock advances this year may not be strong enough to repeat the Shanghai Composite Index’s 53 percent surge in 2014.
“There will be an upswing, but less dynamic than what we saw last year,” Weber said.
The Shanghai Composite rallied in 2014 as the central bank cut interest rates for the first time in two years, the government pledged to open up state-owned enterprises to private capital and investors sought alternatives to a slumping real estate market. The gauge’s advance last year was the second- highest of 93 primary indexes tracked by Bloomberg.
Weber is in Shanghai to speak at the UBS Greater China Conference that starts today with about 1,000 domestic and international investors attending.
--With assistance from Alfred Liu and Karolina Miziolek in Hong Kong.
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