Media365
The Shanghai Composite Index closed at its highest level since August 19, 2015, despite slipping less than 0.1 per cent to 3,727.29 in rangebound trading. The CSI 300 Index fell 0.4 per cent.
In Hong Kong, the Hang Seng Index retreated 0.2 per cent to 25,122.90, while the Hang Seng Tech Index lost 0.7 per cent.
Mainland stocks are in focus as the market reverses years of declines and bucks a slowing economy, with investors rotating out of low-yielding fixed-income products to chase higher returns. A part of the 160 trillion yuan (US$22.3 trillion) household savings built up since the Covid-19 pandemic was expected to shift into stocks due to falling deposit rates and a continuing downturn in property prices, according to analysts.
“We’ve seen long-term capital and individual investors piling into the equity market,” said Li Xuewei, a strategist at HSBC Jintrust Fund Management in Shanghai. “Approaching US rate cuts and abundant overseas liquidity have also boosted risk appetite. China’s excessive household savings may flow into the stock market and fuel further gains.”
Telecoms and consumer stocks were the biggest gainers among the 10 industry groups of the CSI 300 Index, while healthcare and raw-material companies proved to be a drag.
