China’s Stock Market Hits 7 Year High

Mainland Chinese shares closed at a seven-year high despite a survey indicating manufacturing activity in the country continued to decline in May.

The HSBC survey pointed to a continued slowdown in China, but investors are hoping this will lead the government to introduce more stimulus measures.

The Shanghai Composite rose 1.9% to 4,529.42.

Hong Kong’s benchmark Hang Seng index closed down 0.2% at 27,523.72.

Shares of Goldin Financial and Goldin Properties fell more than 60% at one point, wiping about $23bn off the value of the companies. They ended the session down about 40%.

Both Goldin companies said in separate stock exchange filings they were not aware of the reason for the sharp fall in shares.

The steep slide follows that of Hanergy Thin Film Power, which fell nearly 50% on Wednesday before its trading was halted.

via BBC

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza