China Stocks Reach Bull Market Peaks Post Lunar New Year
China stocks returned to trading on Monday after the Lunar New Year holiday, with A-shares close to bull market territory. This marks a strong recovery from last year’s slump and is indicative of increasing investor confidence in the Chinese economy.
The benchmark Shanghai Composite Index rose 0.6 percent during morning trade, while Shenzhen Component Index was up 1 percent at its highest level since July 2015 when it entered a bear market. The ChiNext index of growth companies also gained 1 percent, reaching levels not seen since October 2016 when it began its bull run.
This surge follows an impressive rally for China’s stock markets over the past few months as investors become more optimistic about economic prospects despite ongoing trade tensions between Beijing and Washington DC. Analysts attribute this optimism to government stimulus measures such as tax cuts and increased infrastructure spending which have helped boost consumer demand in recent quarters leading to improved corporate earnings reports across various sectors throughout 2019 so far.Read more at CNBC