China Stocks Resume Rally on Stimulus Bets

China’s stocks rose to the highest level since March 2008, led by technology and industrial companies, on speculation the government will do more to support the economy.

CSR Corp. and China CNR Corp. both surged by the 10 percent daily limit after the two trainmakers said their merger got regulatory approvals. TCL Corp., China’s biggest publicly traded consumer-electronics maker, jumped 3.7 percent on a plan to buy shares of a lender. Large-company shares also rallied, with Industrial & Commercial Bank of China Ltd. and Jiangxi Copper Co. climbing at least 1.4 percent.

The Shanghai Composite Index rose 1 percent to 3,903.43 at 9:58 a.m. The gauge has soared 90 percent over the past 12 months, the best performing major global index among 93 measures tracked by Bloomberg, on speculation the central bank will continue to lower borrowing costs and on increased use of leverage to buy stocks.

Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.