20th March 2015
Speculation over the prospect of fresh stimulus injections boosted shares in China, sending them to renewed seven-year highs.
China’s primary share benchmark, The Shanghai Composite Index, posted its eighth consecutive day of gains, its longest winning streak since September.
On a weekly basis, the index rose more than seven per cent, its largest weekly gain since early December.
A positive sentiment appears to have settled over markets in China, boosted by remarks from the Chinese premier on Sunday.
In the statement, premier Li intimated the government has more stimulus tools to use if necessary, meaning if the economy continues to slide.
The recent outperformance follows the government’s annual parliamentary sessions, and prompted optimistic investors to pour capital into the stock market over the past week.
It seems the Chinese equity market will continue to rise this year, which will continue its run of gains after an impressive performance in 2014 also. The Shanghai Composite Index recorded a more than 60 per cent year to date return, while China’s equity market was the world’s second largest last year.
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