Chinese A-shares enter bull market on 1st trading day after Spring Festival; overseas capital continues pouring in
Published: Jan 30, 2023 12:51 PM
Stock market Illustration: VCG

Stock market Illustration: VCG

Chinese A-shares rose collectively on Monday morning, the first trading day of Year of the Rabbit, entering a technical bull market, with overseas capital continuing to pour in as China's economic recovery accelerates. 

The Shanghai Composite Index opened higher by 1.35 percent, the Shenzhen Component Index rose 2.08 percent and the ChiNext Index jumped 2.76 percent,with sectors such as automobiles and the digital economy leading the rally. 

The CSI 300, which tracks the largest Chinese mainland-listed stocks, has gained more than 20 percent from its recent lows seen at the end of October, 2022, meaning that the Chinese stock market has entered a technical bull market.

Overseas capital continues its buying spree of Chinese shares starting before the Spring Festival holidays, with the amount of "northbound capital" - foreign money flowing into China's A-share market through Hong Kong - exceeding 13 billion yuan ($1.9 billion) within one hour.

Chinese solar giant LONGi Green Energy Technology Co which has been subject to a crackdown by the US government, however, became a favorite of northbound capital attracting 757 million yuan as of 10:30 am, followed by the Chinese electric vehicle battery giant Contemporary Amperex Technology Co (CATL) which attracted 367 million yuan.

Chinese A-share markets have shown positive momentum in recent months after China optimized its COVID-19 response in December 2022, outperforming its global peers. The Shanghai Composite Index rose from 3038.84 on December 23, 2022, to 3280.30 as of Monday morning.

Analysts predicted that the upward trend is expected to continue during the spring season, foreshadowing what will be a promising 12 months marking Year of the Rabbit for the Chinese stock market.

Global Times