A shares roar amid hopes of bull run
Published: Jul 06, 2020 10:42 AM

Chinese stocks climb to highest level since 2015

Chinese mainland shares roared at opening on Monday as a continued surge in securities stocks ignites investor confidence in the start of a bull run in the world's second-largest economy, where supply-side reforms of the financial sector are well underway. 

The economy's resilience amid the COVID-19 pandemic also underpins hopes of a bull run.

The flagship Shanghai Composite Index opened 1.11 percent higher at 3,187.84 points and quickly rose above 3,200 points. As of 10 am, the benchmark rallied as much as 3.5 percent in a rare frenzy in the A-share market. 

The Shenzhen Component Index also opened higher and quickly widened gains. 

Securities shares led the surge despite statements by the nation's two biggest brokerages - Citic Securities Co and CSC Financial Co - which refuted market rumors that they are in talks for a merger that intends to create an investment banking behemoth in China to take on their Western counterparts.

The announcement by China Securities Finance Co on Friday to ease rules for margin financing loan services also added fuel to beliefs that a stock market bull run is approaching.

Trading volumes in the mainland bourses hit 460 billion yuan ($65.19 billion) in the first half hour of trading on Monday, paving the way for the A-share market to welcome its third consecutive day totaling trading of over 1 trillion yuan ($140 billion). 

The roaring market over the past few trading days has reportedly lured many new investors, especially younger ones born after the 1990s, to open stock trading accounts. 

Global Times