Benchmark index responding to signs of economic rebound despite US tensions
HONG KONG — China’s main stock market index closed at a 13-year high on Tuesday, helped by an economic resurgence after the nation managed to control the coronavirus pandemic and by market reforms that attracted foreign capital.
The CSI 300 index, which tracks the largest shares listed in Shanghai and Shenzhen, climbed 1.9% to 5,368.50, its highest close since Jan. 18, 2008.
Investor sentiment got a boost on Tuesday after the New York Stock Exchange reversed course on plans to delist shares of three state-owned Chinese telecom companies, with some investors viewing the move as a precursor to a de-escalation in tensions between China and the U.S., the world’s two largest economies.
“The index run-up has been all the more remarkable because it has come amid very little volatility,” said Hao Hong, head of research at BOCOM International in Hong Kong. “The economic revival and the country’s ability to control the coronavirus have helped. But investors have been emboldened by the rapid reforms underway that are making it easier for companies to raise capital and global money managers to deploy capital.”