Short sellers in the US are betting against the rally in Chinese stocks, expecting capital to move to emerging markets outside China. However, global financial institutions like Goldman Sachs are optimistic about China's stock market, raising their target for the CSI300 index. The rebound in Chinese stocks is predicted to continue, with gains spreading to segments that have lagged behind. Market breadth in China is improving, seen as positive for stock bulls. There is waning confidence in the China stocks rally, as short positions increase. Optimism is growing that Beijing's efforts to revive the economy will benefit Chinese companies. Weak Yuan is boosting the appeal of Hong Kong stocks over China's.