The CSI 300 Index rose 1.9% on Tuesday to surpass the 5,353.75-point mark registered on June 8, 2015. The Tuesday average was the highest since 2008 for a benchmark that has surged more than 50% from March 2020 lows.
- The CSI 300 surge from March lows was accelerated after Beijing made it easier to buy stocks using borrowed money, pushing China’s domestic equities to a record $11 trillion.
- The bullishness was also supported by a strong currency and China’s faster economic recovery from the virus pandemic.
- China’s stock benchmark outpaced MSCI Inc.’s global benchmark by the most in six years in 2020, with savers funneling cash into thousands of new stock funds.
- Chinese stocks peaked in 2015 but tumbled over the next three months erasing more than $5.2 trillion in value as sellers scrambled to liquidate margin trades.
- Analysts now expect the gains in Chinese stocks to be more sustainable, with Citigroup raising their CSI 300 index target to 5,525 points and Morgan Stanley’s year-end target set at 5,570.
CSI 300 Index is currently gaining. 000300: SHA is up 1.91%
