China shares near 7-year highs over policy easing signals
Updated: 2015-03-20 15:28
(Xinhua)
|
|||||||||
Rising global appeal
The positive signals for economic growth have also attracted foreign investors to cash in on the world's second largest economy's reform and development dividends.
The FTSE China A50 ETF, a fund with CSOP Asset Management Ltd., debuted in mid March with more than $237 million in assets and 13.96 million shares on the New York Stock Exchange (NYSE), the largest initial capital investment among all US-listed equity ETFs since 2007.
The fund tracks the performance of the FTSE China A50 Net Total Return Index, which provides exposure to the 50 largest stocks on the Shanghai and Shenzhen Exchanges.
The Chinese equity market was among the world's best performing markets in 2014. The Shanghai Composite Index recorded more than 60 percent year to date return. The turnover of A-Share market reached a historical high and China's equity market was the world's second largest.
The ongoing internationalization of the Renminbi (RMB), together with the recent liquidity injection and interest rate cut by the central bank, will allow China's capital market to further open up and grow by attracting foreign investors.
Moreover, the A-Share market offers diversification opportunities to global investors due to its low correlation with regional and world portfolios.
"With the launch on the NYSE, the FTSE China A50 ETF can be exchanged in Asia, Europe and North America, offering a day trading platform for foreign investors interested in Chinese stocks," said Ding Chen, CEO of CSOP.
Related: Stocks surge to highest since 2008
Chinese stocks rallied to the highest level since April 2008, led by gains in steel and advanced industry sectors, as signs show that the Ministry of Finance is moving to rectify trillions of yuan of entangled local government debt.
The benchmark Shanghai Composite Index surged by 2.13 percent to close at 3,577.3 on Wednesday. The gauge has gained about 76 percent during the past 12 months.
Steel stocks led the rally, with Valin Steel, Bao Steel, Fangda Steel and Daye Special Steel jumping by the daily limit of 10 percent.
The Shenzhen Component Index jumped 2.68 percent to 12,496.24, while the CSI 300 Index added 2.37 percent to 3,846.05.
Smart TV manufacturers, including TCL and BOE Technology Group, gained 10 percent. Hisense and Sichuan Changhong rose 9.7 and 6 percent respectively.
High-tech industry sector remained bullish on Wednesday, as digital machine tool manufacturer Yawei Group jumped by the daily limit, and Qinchuan Machine Tool Group and mobile antenna company Shenzhen Sunway Communication by more than 5 percent.
Trading in Shanghai and Shenzhen bourse climbed on Wednesday and amounted to 617.4 and 504.5 billion yuan respectively.
The Ministry of Finance earlier announced that it issued rules on general local government bond issuance (GLGB) on Mar 12. Combined with the pilot program launched last year that allowed 10 municipals to officially issue GLGBs, the moves aim at lessening the liquidity pressure among regional governments and enhance transparency in fiscal budget.
- How much do world leaders earn?
- Daredevil ropejumpers leap 200 meter off cliff
- Harley motorcade shows up in Boao, Hainan
- Ming art sets Christie's high
- Stolen-phone bromance blossoms in China
- Prince Charles, Camilla get royal tour of Washington
- Should selfie sticks be banned?
- Tunisians demonstrate against terrorism
Most Viewed
Editor's Picks
Annual legislative and political advisory sessions |
Spring Festival trends reflect a changing China |
Patent applications lead the world |
BC lures Chinese tourists |
Festival Special: Apps that make holiday shopping easier |
Alibaba places China smartphone business bet with $590m Meizu deal |
Today's Top News
Yahoo to exit from Chinese mainland market
US sends 'green' mission to China
Sticking it to the selfie stick
China's eco-friendly companies stand to gain
China's global image on rise
3 killed in shooting at California convenience store
More Chinese film companies tap into Hollywood
Microsoft tackles China piracy with free upgrade to Windows 10
US Weekly
Geared to go |
The place to be |