...but Ruffer predicts further surge for rocketing Shanghai market

Ruffer's Hamish Baillie and Steve Russell have said Chinese equity markets could soar further as the Hong Kong-Shanghai Stock Connect continues to boost sentiment and trading volumes.

The Shanghai Composite has risen 36% this year, helped by stimulus measures unleashed by Chinese policymakers, to add to the major gains made in Q4 2014. The index surged 18% in April alone as policy was loosened further and the trading link between Hong Kong and Shanghai exchanges drove volumes higher, and Ruffer believe this dynamic has further to go. "The main takeaway would seem to be that the authorities are succeeding, possibly too well, in their aim to redeploy Chinese savings away from property and into financial assets," the pair said in their latest monthly update. "Certa...