Photographer: Qilai Shen / Bloomberg
Photographer: Qilai Shen / Bloomberg
China’s shares are close to recovering from the highs last reached in 2015, when a bubble inflated prices before exploding. The ratings are more reasonable this time around and there are few signs of frantic speculation. In contrast, the relative isolation of the pandemic country and the global bull race are contributing to increased earnings. US the deregistration of Chinese companies has little impact on domestic sentiment.
The CSI 300 index is less than 2% below the maximum closing level since June 8, 2015. The gap has increased by 49% from the low of March last year as the country shook off coronavirus flu. The buying momentum is strongest since July, while the index is trading 15% below its 2015 high, based on the price of futures.
IN FOCUS
- Shanghai Composite is also set for a bullish breakish: Monday’s index pushed higher above a key resistance around 3,460 points – a level that capped earnings for the benchmark since the melting of China’s shares in July.
- FTSE Russell said it would remove three more Chinese securities from the indices, a move that was widely expected after the US expanded its list of sanctioned companies. China United Network Communications, SMIC and Nanjing Panda Electronics to be cut on Thursday, adding to eight companies already in the removal list.
- According to Beijing, US companies doing business in China disclose any military links the state-backed Global Times. The report highlighted the “principle of reciprocity”, citing an adviser to China’s securities regulator.
- China’s central bank could use Tuesday’s remedies to send a signal about its tolerance for the yuan rally. The spot rate increased the most in three months, extending its first over the last fixation to the highest in November.
change
- The NYSE’s decision to remove some Chinese ADRs will “strengthen HKEX’s status as a leading listing site for mainland companies,” according to Citigroup analysts, who predicted even more secondary listings of Chinese companies listed in the United States. The shares of the Hong Kong exchange operator increased by 68% in 2020, and the new target of the Citi price of 500 US dollars implies a gain of 13%.
- Shares of WuXi Biologics could fall in Hong Kong after a shareholder agreed to sell 102 million shares for $ 96.50 a piece. This implies a reduction of 6.5% until the end of the month.
- Zhongtai cryogenic technology can move to Shenzhen according to the estimate Net income increased to 180% in 2020.
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