Chinese stocks close at highest level since 2008

Chinese stocks close at highest level since 2008

Rally builds on a large recovery in 2020

China’s stock market closed at its highest level since the global financial crisis, capping a world-beating rally fuelled in part by international investors seeking shelter from the coronavirus pandemic.

The CSI 300 index of big Shanghai and Shenzhen-listed stocks closed 1.9 per cent higher on Tuesday at 5,368 points.

The widespread perception among the country’s retail investors that stocks are cheap, together with expectations of support from Beijing, is helping to drive onshore buying, said Ronald Wan, chief executive at Partners Capital.

“People are investing in the stock market because they don’t have another alternative at this point in time and people’s confidence is bouncing back,” Mr Wan said.

Chinese shares have rallied more than 50 per cent from a low point set during a Covid-19-sparked sell-off in March. Lured by the country’s strong economic recovery from the pandemic, global investors ploughed more than Rmb1tn ($150bn) into the country’s onshore stock and bond markets last year.