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Anonymous ID: 945de8 Oct. 12, 2020, 5:57 p.m. No.11044752   🗄️.is 🔗kun   >>4805 >>4864

China’s Stock Market Tops $10 Trillion for First Time Since 2015

Chinese domestic equities are worth more than $10 trillion for the first time since 2015, when a record crash erased half the market’s value in months and saddled millions of investors with losses. The world’s second-largest stock market has added $3.3 trillion since a low in March, helped by Beijing’s policies to encourage equity trading, a flurry of new listings and the strengthening yuan. Stocks have been close to the $10 trillion milestone since July, when China’s government acted to tame a speculative rally that had suddenly pushed a gauge of large caps near a 12-year high.

 

The country’s total market capitalization is now $10.04 trillion and just shy of the all-time high, according to data compiled by Bloomberg as of Oct. 12. The U.S. has the world’s most valuable stock market at $38.3 trillion. Chinese shares have rallied since a long holiday break on optimism the government will introduce reforms to turn the region around Shenzhen into a global technology hub and that the ruling Communist Party will introduce policies to stimulate demand when it holds a major meeting later this month. Equities surged over the summer as margin debt climbed at the fastest pace since 2015 and turnover soared. A stronger yuan has also helped stocks. China’s currency rose 3.9% last quarter, the most in 12 years. That advance has prompted the central bank to restrain the yuan’s rally while stopping short of encouraging declines.

 

China has added a new stock venue since 2015, with the Nasdaq-style Star market launching in Shanghai in July last year. Regulators waived rules on valuations and debut-day price limits for shares on the board.

https://www.bloomberg.com/news/articles/2020-10-13/china-s-stock-market-tops-10-trillion-for-first-time-since-2015