Chinese stocks rose to their highest level since June as signs of progress in trade talks and the breaking of a key resistance level added to confidence. Shares pared gains in afternoon trading as investors took profit.
The Shanghai Composite Index climbed 1.1 percent at the close, paring a gain of as much as 3.2 percent after smashing through the 3,000 level that had capped gains all last week. About seven stocks rose for each that fell on the gauge. The index has now climbed 23 percent since its Jan. 3 low, helping add some $1.5 trillion in value to China’s stock market.
Momentum in China’s stock market hasn’t been this strong since the peak of the bubble in 2015. The Shanghai Composite’s relative-strength index is nearing the highest levels seen that year. Almost all of its 1500-odd members are above their long-term moving averages, showing the rally is also the broadest since 2015. Turnover has surged after falling to near a four-year low in December.
Source : Bloomberg