Chinese shares at 2-year high, showing market resilience to virus

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Chinese shares at 2-year high, showing market resilience to virus
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CSI 300 Index closed up 2.2% at 4206.73, on pace for its best week since November 2015. FMTNews Chinese

Stocks globally are rebounding as virus worries recede for equities investors with central banks swinging into action.It took Chinese equities just two weeks to reverse a record US$720 billion rout last month, part of the resilience its markets have shown in the face of the outbreak.

“Expectations for further Fed rate cuts are helping the markets,” said Banny Lam, managing director and head of research at CEB International Investment Corp in Hong Kong. China’s stock rebound the past month has also coincided with a jump in trading activity. The value of equities changing hands has topped 1 trillion yuan in 11 of the past 12 sessions, a run not seen since 2015.

Investors rotating into infrastructure firms and banks may continue, said Guo Feng, an investment adviser at Northeast Securities Co.

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