China’s shares rose to its highest level in nine months, on Wednesday, as investors exceeded concerns about the threats of US customs duties, and they prepared for a long -awaited emerging market.
The Shanghai complex index increased by 0.6 percent to 3636 points, its highest level since October 2024, to enter an emerging market – it is usually known as a 20 percent increase in its lowest level recently. The index rose for three consecutive months.
On Tuesday, American and Chinese officials agreed to strive to extend the 90 -day customs duties truce, after two days of what the two sides described as constructive talks aimed at defusing a trade war between the two largest economies in the world that threaten global growth.
“Investors are increasingly indifferent to Chinese -American trade talks, and they pay more attention to local issues,” said Wang Zhou, a partner at the Shanghai Chuchao Investment Management Company. Earlier this week, “Goldman Sachs” raised his goal of Chinese stocks, pointing to “viable prospects for a commercial agreement between the United States and China.”
Wang added that the low interest rates push investors to invest in shares, especially leadership -raising stock shares, while China’s endeavor to eliminate excessive competition in some sectors improves corporate profits expectations.
He added: «Now that the index entered the emerging market area, the money will continue to flow. I do not see any indications of a recovery, so this ascension is justified. ”
China has started a 1.2 trillion yuan ($ 167.3 billion) trillion ($ 167.3 billion) in Tibet this month, and Beijing launched a campaign against fierce price wars, which sparked hopes for an end to the country’s defamation.
“Chinese stock markets are rich in capital, and we are currently in an emerging market driven by this abundance,” said Zeng Winkai, chief investment official at Shangki Asset Management.
The Chinese stock market trading course remained high during the past week, at about 1.8 trillion yuan per day, while the existing margin financing balance rose to its highest level in ten years, approaching the trillion of Yuan.
In Hong Kong, the standard Hang Singh index is approaching its highest level in four years. The market has jumped by nearly 30 percent this year, against the backdrop of standard flows from continental China, recovering foreign interest, and the prosperity of the initial public subscriptions market.
According to the UBS global report for families ’offices, 39 percent of family offices in the Asia and Pacific region plan to increase their investments in Greater China during the next 12 months.
By the lunch break, the CSI3 index rose to the leadership stocks in China, and the Shanghai complex index increased by 0.5 percent, while the Hong Kong Standard Index in Hong Kong decreased by 0.4 percent.
The shares of the car companies pushed the Hang Singh index to decrease, as the share of «Li Auto» fell by more than 10 percent, as its new launch pricing and its rivalry caused investor concerns.
Meanwhile, investors are waiting for the details of the political bureau meeting in July, scheduled this week, for more political directives, although some analysts believe that the recent economic data that came better than expected and declining commercial tensions may push leaders to postpone more stimulus procedures at the present time.
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