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China stocks hit seven week high

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The benchmark Shanghai Composite Index rose 17.12, or 0.75% to 2,299.99 at the close of Monday trading touching a seven week high in the process.

Various reasons were given for the rise including the nation’s economic planning agency said investment projects for airports and gas fields won’t need pre-approval any more.

As well, low market valuations and improving company profitability and capital inflows were also cited.

The day capped a fascinating string of rises for the China index.

Financial stocks led the market up. ICBC, the nation's largest lender, rose 1.2 percent to 4.21 yuan. Agricultural Bank of China gained 1.5 percent to 2.79 yuan. China Minsheng Banking Corp jumped 3.6 percent to 10.86 yuan.

The rise in the China market, if it continues augurs well for its trading partners including Australia.

Although property stocks appear mixed as fundamentals are strong but With the issue of potential restrictions on property, there may be headwinds for property counters.

China’s policy makers are trying to avoid property bubbles and make homes more affordable while bolstering an economy that lost steam in the first quarter.

Expanding a campaign against housing speculation could choke off real-estate development that is helping counter a slowdown in manufacturing investment and supporting demand for steel, cement and household goods.

 

*Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China. * Reported by Proactive Investors 3 hours ago.

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