China Stocks Stall Near 5-Year High After Xi’s Big Address
Xi’s Speech Could Finally Push Chinese Stocks to Five-Year High
(Bloomberg) -- Xi Jinping failed to provide any fresh incentives for stock traders to push Chinese shares to a 5-year high when he delivered a much-anticipated speech in Shenzhen.
The CSI 300 Index fell 0.7% Wednesday in the wake of his address. The gauge had rallied 5.5% in the prior three days, partly driven by optimism President Xi would lay out details about further opening up the economy and developing the technology powerhouse of Shenzhen. In the end, his 50-minute-long address lacked specifics.
While the nation’s stock market capitalization rose to a record $10.08 trillion on Tuesday, the CSI 300 is struggling to break out of a trading range it’s been in the past three months. The next catalyst may be a Communist Party plenum at the end of the month, followed by the U.S. elections.
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With assistance from Bloomberg