China’s mainland stock index hits a five-year high, 2021
The Chinese stock market closed with favorable gains on the previous trading day of the Year of the Rat, making the Shenzhen component index and the Nasdaq-like ChiNext index set new highs in the previous five years.
The benchmark Shanghai Composite Index closed up 1.43% to 3,655.09 points, while the Shenzhen Component Index rose 2.12% to 15,962.25 points. The ChiNext index also rose strongly by 2.39%.
A total of 2,457 shares rose on Wednesday, while 1,385 shares fell. There will be a week-long Chinese New Year holiday before the market starts trading in the Year of the Ox.
A research report from CITIC Securities raised its one-year price outlook for Kweichow Moutai, a major Chinese liquor brand on Wednesday, from 2,601 yuan on Wednesday to 3,000 yuan ($466), which made it excited. The liquor industry rose 4.91%. on Wednesday.
The CSI 300 stock Index, which is comprised of the 300 largest and more liquid A shares, rose 2.14%.
According to Reuters, since October 2007, the Shanghai and Shenzhen 300 Index hit a 13-year high on Wednesday.
Wednesday is the last trading date of the Year of the Rat, and its strong performance is in sharp contrast to the first trading day of the year. That year, the news of the COVID-19 outbreak in China panicked investors and caused the stock market to plummet. On February 3, 2020, the Shanghai stock Index plummeted 7.72%.
Despite the frightening start, the “Year of the Rat” was an optimistic year for China’s capital market, with the Shanghai Composite Index rising 600 points.
For the whole year, the Shanghai stock index rose by 19.43%, while the Shenzhen index rose by 44.17%. The ChiNext index performed better, rising 71.21%.
Some investors interpret Wednesday’s bull market performance as a good sign for the upcoming Year of the Ox, which is psychologically linked to the bull market of many Chinese. They also cited the fundamentals of the Chinese economy as the reason for their bullish views in the first quarter transactions.
China’s consumer price index, a key indicator of inflation, fell by 0.3% in January, and factory prices rose year-on-year for the first time in a year.
In the latest World Economic Outlook released by the IMF in late January, the Chinese economy is expected to grow by 8.1% in 2021, while the global economy will grow by 5.5%.