SHANGHAI - China's equity market is firmly in the spotlight after an almost unprecedented rally that helped lift global stocks to a one-month high.
The advance continued on Tuesday , though at a slower pace. The CSI 300 Index rose as much as 2.1 per cent to extend its five-year high, with trading volume more than three times the three-month full-day average. The offshore yuan strengthened past 7 per dollar for the first time since March. "The market will likely consolidate after strong rallies, especially as big caps have outperformed smaller peers by a big margin in the past week," said Shen Zhengyang, an analyst with Northeast Securities."Regulators wouldn't want to see rapid gains in the market either. But there remain plenty of opportunities, and investors will continue to rotate into some laggards so the uptrend is still intact.
As China's tight capital controls limit the investment options for the country's savers, this year's low interest rates and the first losses ever for some popular wealth-management products are driving retail investors to stocks. But some analysts, as well as mainland media, say the country's economic recovery and the government's handling of the coronavirus outbreak have helped underpin the rally.