Chinese stock markets celebrate as Beijing is the only growing economy in 2020 – RT in english

Driven by strong domestic consumption, the Shanghai and Shenzhen stock indexes broke record. In 2020, China will be the only major growing economy.

The total value of all stocks listed on the Shanghai and Shenzhen stock exchanges hit a new high of $ 10.080 billion at the close on October 13. “It’s a significant figure, especially after a break in the rally [mouvement de hausse] on equities, ”said Hao Hong, chief economist at Bocom International in Hong Kong, quoted by Bloomberg.

The CSI 300 index of major stocks listed in Shanghai and Shenzhen rose 0.3% at the close on October 13, heading for a year-to-date gain of 18% – better than major stock indexes global.

The rise was fueled by several factors: the rapid recovery of the Chinese economy, the appreciation of the yuan and the increase in the number of IPOs of Chinese companies. The 2019 launch of the Nasdaq-style Star Market in Shanghai also helped attract more investment.

On the same day, Beijing released positive trade data. For example, during the so-called “golden” holiday week at the beginning of October, when hundreds of millions of Chinese from all over the country travel to visit their families, household spending rose by nearly 5% compared to last year.

The Hong Kong stock exchange also ended up on October 16 to post its third consecutive weekly gain. The Hang Seng Index rose 0.9%, while the Chinese Business Index, which tracks mainland companies listed in Hong Kong, gained 1.6%.

China’s economic recovery was confirmed from the start of the second half of the year and accelerated in the third quarter, as consumers returned to shopping centers.

In his October newsletter, the International Monetary Fund has revised upwards its forecasts for China and anticipates growth of nearly 2% for the whole of 2020 against a recession of 5.8% for the most developed economies. In 2021, it is again the Chinese economy which should drive global growth, with a jump of over 8% against a world average of + 5.2% – the same figure as for the euro zone – while in the States -Unis the rebound is only expected to 3.1%.

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