Across The Border | President Xi’s July 1st speech, and the analysis that followed, helped boost China stocks this week
An apparent commitment to fostering a healthy and stable market has helped to win back investor confidence
A vague policy statement from China’s securities regulator may have been a catalyst for a 2.9 per cent rally in mainland shares earlier this week.
On Monday, the China Securities Regulatory Commission (CSRC) published a statement saying that senior officials had reached a consensus to align with policies of the current leadership to develop the mainland’s capital market following an analysis of President Xi Jinping’s speech made on July 1.
The statement contained little substance while touting the instructions by the president as something with far-reaching significance. Xi’s speech on July 1 was addressed to hundreds of elite cadres during a ceremony to commemorate the Communist Party’s 95th anniversary.The CSRC studied the speech over a two-day period ending Monday.
The benchmark Shanghai Composite Index rebounded 1.9 per cent on Monday, reflecting its largest single-day rise in two months.
On Tuesday, the main gauge advanced another 0.6 per cent to 3,006.39, the first time it closed above the psychologically important 3,000-point level since April 19.
