China Stocks Jump to Seven-Month High on Shenzhen Link Optimism
- Property shares surge for second day on takeover speculation
- Shanghai turnover rises to four-month high as volumes jump 63%
Should Investors Be Worried About China's Economy?
Chinese stocks climbed to a seven-month high on surging turnover as takeover speculation buoyed property developers and shares in Shenzhen rallied after a report said details of an exchange link with Hong Kong will be announced shortly.
The Shanghai Composite Index gained 2.4 percent at the close, with about 90 stocks rising for each that fell. A gauge of real estate companies capped its steepest two-day rally in almost a year after stake purchases by China Evergrande Group fueled optimism of more mergers. The ChiNext Index rose 3.3 percent after the Hong Kong Economic Journal said small-cap shares in Shenzhen will be included in the link and the start date may be announced as soon as this week. Chinese stocks in Hong Kong rose for an eighth day.