China markets see boom in 2019
Stock markets in China have been booming so far this year, built around optimism over the domestic economic outlook.
Shanghai’s SSE Composite Index has risen more than 30 percent since the start of the year, while Shenzhen’s SZSE Component Index has seen an even bigger boost of more than 40 percent in the same period, according to official statistics. The CSI 300 – the index focused on the 300 largest companies traded on the Shanghai and Shenzhen stock exchanges – has also soared 35 percent.
This is in contrast to a poor 2018, when Chinese markets experienced their worst performance in a decade: the SSE Composite ended last year 24.6 percent lower than the year before, according to Chinese financial services firm Wind Information.
Comparing China’s capital markets to other major markets in 2019, they fare impressively well: the Dow Jones Industrial Average has risen 13 percent this year while the S&P 500 is up 15 percent.
The latest official GDP numbers also show China’s economy grew 6.4 percent year-on-year in the first three months of this year, potentially helping to boost market positivity even further.
Many official numbers coming out of China – from positive export figures to solid manufacturing growth – have helped to assist investor optimism, too.