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
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