China Stock Market – Waking up from a long slumber

This is an update from 15 November 2014 post.

The Shanghai Composite index rose a whopping 4.31% in a single day today to end at 2,899.46 points.

Date Shanghai Composite Change (%)
1 Jan 2012 2,199.42 NA
1 Jan 2013 2,269.13 + 3.1
1 Jan 2014 2,115.98 – 6.7
14 Nov 2014 2,478.82 + 17.1
4 Dec 2014 2,899.46 + 16.9

The index rose a spectacular 37.0% since the start of this year. Suddenly, investors woke up to the value of the China stock market. This is despite the economy of China would be worse compared to 2013.

I do not know the reasons. It could be that central bank, PBOC, is embarking on a accomodative monetary policy to address slowdown in the economy. It could also be due in part to the launch of Shanghai-Hong Kong Stock Connect on 17 November 2014.

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.

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