Commodity Supply Crunch to Boost Already Booming Chinese Stocks
- Raw material shares have jumped alongside surge in commodities
- China’s factory-gate inflation accelerated to a 13-year high
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Chinese material stocks are soaring as commodity prices boom, and expectations for supply shortages signal shares may have room to rally even more.
Raw material stocks have led gains in both Shanghai and Hong Kong over the past month as robust demand pushes base metals to coal to fresh peaks. Among the top 10 performing stocks on the CSI 300 Index, seven are commodity producers, including a 72% surge for Huaneng Power International Inc. and Aluminum Corp. of China Ltd.’s 67% climb. Material stocks are also the best performers on the Hang Seng Composite Index.