(Yicai Global) July 22 -- The Chinese economy will recover to pre-epidemic levels by the end of this year while the country's stock markets should gain in the second half, according to Standard Chartered.

China will become the first major economy to rebound after the pandemic eases due to its loose monetary policy and growing fiscal support, the London-headquartered multinational bank said in a research report published today.

Equity prices are still low compared to government bonds, and the decline in bond yields will also provide support for the stock markets to rise in the second half, also benefiting from increased capital inflows, the financial institution added.

Editor: Emmi Laine