China’s Shanghai Composite Rises 2%, Erasing This Year’s Loss
China’s stocks rallied, with the Shanghai Composite Index poised to erase this year’s losses, on speculation an improving economic outlook will boost earnings.
The Shanghai Composite Index advanced 2 percent to 2,203.19 at the 11:30 a.m. local-time break, adding to a 0.2 percent gain for this year. The index has risen 12 percent since reaching this year’s closing low of 1,959.77 on Dec. 3 as the nation’s new leaders said they would promote urban development as part of economic reforms.
“There are growing expectations that new leaders will take measures to reform the economy and the financial system will find China new growth drivers,” said Wang Zheng, Shanghai-based chief investment officer at Jingxi Investment Management Co., which manages $120 million. “That’s why you see all these big- caps rallying today. The ongoing economic recovery is spurring the rebound as well.”
The CSI 300 Index climbed 2.5 percent to 2.439.68 today.
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