Photographer: Qilai Shen / Bloomberg
Photographer: Qilai Shen / Bloomberg
China’s stocks are close to recovering the highs last reached in 2015, when a bubble inflated prices before bursting. Valuations are more reasonable this time around and there are few signs of frantic speculation. In contrast, the country’s relative isolation from the pandemic and the global bullfighting contribute to increased profits. The USA the decline of Chinese companies has little impact on national sentiment.
The CSI 300 index is less than 2% below its closed high as of June 8, 2015. The indicator has risen 49% since the March low last year, as the country shook the grip of the coronavirus. The buying momentum is the strongest since July, while the index is trading 15% below the 2015 high based on forward earnings prices.
CONCENTRATE
- The Shanghai Composite is also forecast for a bullish break: Monday’s index advanced more than a key resistance around 3,460 points, a level that had surpassed benchmark gains since China’s stock merger in July.
- FTSE Russell he said it would remove three more Chinese stocks from its indexes, a move that was widely expected after the United States expanded its list of sanctioned companies. China United Network Communications, SMIC and Nanjing Panda Electronics will be cut from Thursday, joining the eight companies already appears in the list of deletions.
- Beijing may require U.S. companies doing business in China to disclose any military ties, according to the Global Times newspaper, supported by the state. The report noted the “principle of reciprocity,” citing an adviser to China’s securities regulator.
- China’s central bank may use Tuesday’s correction to send a signal about its tolerance for the yuan’s rally. On Monday it increased the spot rate by three months, extending its premium in the last fixation to the largest since November.
REMOVALS
- The NYSE’s decision to withdraw some Chinese ADRs will “strengthen HKEX’s status as a key listing site for mainland companies,” according to Citigroup analysts, who also predicted more secondary listings of U.S. firms listed in the U.S. Shares of Hong Kong foreign exchange trader rose 68% in 2020 and Citi’s new HK $ 500 price target implies a 13% gain.
- Shares of WuXi Biologics could fall in Hong Kong after a shareholder agreed to sell 102 million shares at HK $ 96.50 per piece. That implies a 6.5% discount at the close of Monday.
- Zhongtai cryogenic technology can be moved to Shenzhen after loving it net benefits increased to 180% in 2020.
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