SOURCE / ECONOMY
Chinese stocks usher in 2021 with strong surge
Published: Jan 04, 2021 12:18 PM

File photo shows the exterior view of Shanghai Stock Exchange at Pudong New Area in Shanghai, east China. (Xinhua)



China's stock markets surged on the first trading day of 2021, as investors nurtured hopes for a continued recovery of the Chinese economy in the new year after the country spent 2020 in somewhat of a coronavirus-triggered crisis but managed to stabilize economic growth successfully. 

At opening, the three major mainland stock boards all edged up. The Shanghai Composite Index went up by 0.05 percent, Shenzhen Component Index up by 0.31 percent and ChiNext up by 0.37 percent. Securities and Tesla related shares led the rally. 

In particular, the ChiNext board widened its gain to a 3.77 percent surge by the close of the morning session. The Shenzhen market also jumped up by more than 2.47 percent, while the Shanghai market rose by 0.86 percent.

Strong gains on the stock markets came after China's economic activities were unaffected by a number of localized breakouts of coronavirus in multiple cities. 

Data from tourism service provider Trip showed that it's becoming difficult to book hotels in many cities during the New Year holiday, as travel plans also remain unaffected. 

The Global Times also observed many restaurants were full during the 2020 Christmas season in Shanghai, and celebration activities like Christmas markets were rolled out as usual.

Stock analyst Yang Delong noted that China's economy will speed up recovery in 2021, with first quarter GDP likely to surge above 14 percent and the whole year growth exceeding 9 percent. As a result, the stock markets will continue the bull trend with the Shanghai market expected to rise 10-20 percent, he said. 


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