China shares in vogue again?

The Shanghai Composite index jumped 2.4% yesterday (28 July) to end at 2,177 points. For one week, the index was up 6.1%. This was a huge increase considering stocks in China were not in favour for a long while with investors.

Date Shanghai Composite Change (%)
21 July (Mon) 2051  
22 July (Tues) 2075 + 1.1
23 July (Wed) 2078 + 0.1
24 July (Thur) 2105 + 1.3
25 July (Fri) 2126 + 1.0
28 July (Mon) 2177 + 2.4

What sparks the change of heart? News out on Thursday (24 July) showed China’s purchasing managers’ index (PMI) for July was the highest in 18 months (at 52.0 based on flash estimate by HSBC/Markit).

The herd instinct took hold and investors did not want to miss the boat in getting a piece of the action.

Copyright © 2014, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

Advertisements
This entry was posted in Financial Management. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s