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
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