China's stock market opens high on Monday with Q3 GDP report

Source: Global Times Published: 2020/10/19 12:11:37

Stock market Photo:VCG

China's stock market opened high on Monday as China released its Q3 GDP report, with the economic rebound sending the market toward its highest point in two years.

The Shanghai Composite Index rose 0.44 percent to 3351.1 following the release of GDP report, and the Shenzhen Component Index was up 0.78 percent to 13638.78.

By the end of the morning trading session, the Shanghai Composite Index has dropped back by 0.33 percent. 

The valuation upon market opening may have gotten a nudge from the latest GDP report, which was released on Monday. According to the National Bureau of Statistics, for the third quarter, China's GDP grew 4.9 percent, totaling a 0.7 percent growth for the first three quarter of this year. Growth of infrastructure investment, goods exports and imports, as well as the retail sales of consumer goods, all turned positive in the third quarter. 

Global stock indices have also been climbing this year, but at a slower pace. The S&P 500 Index gained 7.8 percent and the MSCI Asia Pacific Index gained 2.3 percent. 

"The positive GDP growth has shown that China's recovery from the impact of COVID-19 has been strong, and is in line with market expectations," Dong Dengxin, director of the Finance and Securities Institute at the Wuhan University of Science and Technology told the Global Times. 

"The accelerated growth of the first three quarters of the year will continue into the fourth quarter, sending the Shanghai Composite Index to around 3500 by the end of this year, back to its 2018 peak," Dong added. 

In the remaining months of 2020, Dong said the Chinese stock market will possibly suffer volatility as a result of the US election, but, supported by stronger economic fundamentals, the overall market sentiment remains optimistic. 

Global Times

Posted in: MARKETS

blog comments powered by Disqus