China’s stock market will enjoy a rally lasting from now until the first quarter of 2013 as local authorities complete their own leadership changes ahead of the national changeover later this year and start to focus on implementing stimulus measures, while property curbs might be eased because of the cooling economy, Nomura said.

The broker forecasts that the MSCI China Index will gain by 15 to 20 per cent to reach the low 60s in the first quarter of 2013. The gauge closed at 53.37 as of Tuesday.