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China Stocks Rally Near Two-Year High on PBOC’s Easing Signal

  • Shanghai Composite trades near its highest level since 2018
  • Gauge is world’s best performing major benchmark this year
Updated on

China’s move to pump cash into its banking system has fueled bets monetary policy will remain loose, driving the benchmark gauge near its highest level in more than two years.

The Shanghai Composite Index climbed 2.3% to 3,438.80 at the close. Financials led the gains, with China Merchants Securities Co. and China Life Insurance Co. both jumping by the 10% daily limit. Monday morning, the People’s Bank of China added 700 billion yuan ($101 billion) of one-year funding via the medium-term lending facility in a sign it wants to ease monetary policy to help the economy recover from the coronavirus pandemic.