China Markets Are Hot Again as Traders Bet on More Policy Easing
- CSI 300 Index rallies Thursday as factory inflation moderated
- China’s central bank had announced RRR cut on Monday
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Hopes of policy easing have breathed fresh life into Chinese financial assets, with strong signs investors are returning to the market after being deterred by months of regulatory crackdowns and an economic slowdown.
Everything from stocks to the nation’s sovereign and dollar bonds are rallying, with investor confidence boosted by the yuan’s surge to a three-year high. Foreign funds piled a near-record amount of money into mainland shares on Thursday, after last month buying the most Chinese government notes since January.