BEIJING: China’s equity benchmark rallied by the most since July as investors piled into stocks amid attempts by policymakers to contain commodity prices.The CSI 300 Index closed 3.2% higher at its strongest since early March, driven by gains in consumer staples equities.
Beijing’s efforts to talk down commodity prices and impose more control over financial markets have sent investors into more defensive assets such as consumer stocks with steady cash flows. “Beijing’s crackdown on commodity prices has forced more funds to seek shelter,” said Zhang Gang, a Central China Securities strategist.
“The strong buying of foreign investors in A-shares via the trading links has a lot to do with the stronger yuan,” said Jackson Wong, Amber Hill Capital Ltd’s asset management director.