China's Small-Cap Stocks Are About to Enter a Bull Market

(Bloomberg) -- China’s small-cap stocks are nearing a bull market.

The ChiNext Index rose 1.2% Thursday, taking its rally since a June 6 low to 19.3%. Investors have piled into technology shares, which dominate the gauge, on hopes for further monetary easing and renewed trade talks between Beijing and Washington.

Closing more than 20% above the June low would mean the ChiNext gauge meets the threshold for a technical bull market. The gauge entered a bear market in June after it fell more than 20% from an April high.

Wuhu Token Science Co. and Shenzhen Sunway Communication Co. are among leading gainers among ChiNext members this quarter, each having surged more than 45% since the end of June.

--With assistance from Amanda Wang.

To contact the reporter on this story: Fox Hu in Hong Kong at fhu7@bloomberg.net

To contact the editors responsible for this story: Lianting Tu at ltu4@bloomberg.net, David Watkins, Magdalene Fung

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