2024-10-03 20:33:38
After the Chinese authorities decided to stimulate the economy, shares of Chinese companies rose to their highest weekly level since 2008. This was reported by the Financial Times (FT), Day.Az reports with reference to Lenta.ru.
According to him, support for the stock market, for which Beijing agreed to spend $114 billion, resulted in the CSI index of 300 companies listed on the Shanghai and Shenzhen exchanges rising by 15.7 percent.
Commenting on the development, Abrd’s head of Chinese equities, Nicholas Yeo, said this is a defining moment for the Chinese economy and its equity market.
In turn, Invesco global market strategist David Chao noted that as the dollar continues to weaken amid Federal Reserve interest rate cuts, a shift from expensive and crowded global technology trading to cheaper emerging market assets is possible.
It is also noted that measures to stimulate the Chinese economy have led to an increase in prices for most commodities, with the exception of oil, prices for which fell due to news that Saudi Arabia is preparing to increase production. Industrial metals such as copper, aluminum and zinc, of which China is a major consumer due to its huge manufacturing sector, have become more expensive. For example, since September 24, copper has risen in price by more than five percent, breaking the mark of 10 thousand dollars per ton.