The Shanghai Stock Exchange reached its highest level in three months in the middle of this trading week. It was dragged up by growing fears of rising inflation and thus a possible tightening of monetary policy that would conserve the country’s economic recovery after the coronavirus crisis.
Chinese stocks closed Wednesday at their highest level in three months. The Shanghai Stock Exchange’s aggregate index gained 0.34 percent from Tuesday and was close to the 3,600-point mark. It was last this high at the end of February this year. The main CSI300 index added just 0.04 percent. Real estate titles and the financial sector grew the most. By contrast, shares of agricultural companies or companies focusing on alternatively powered vehicles lost between 0.6 and more than 4 percent.
Markets in Shanghai rose as fears of rising inflation weakened, which could lead to a tightening of monetary policy and an increase in the risk of a tightening of the country’s economic recovery. For similar reasons, shares in Hong Kong also rose, reaching a four-week high on Wednesday. The Hang Seng index firmed 0.88 percent to climb above 29,000 points. The index, which includes only Chinese firms, added 0.58 percent, while the technology and real estate sectors firmed by more than a percent. Financial sector stocks also strengthened.