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March 7, 2020, 11:01 a.m. EST

Coronavirus outbreak aside, China stocks just hit two-year highs

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By Tanner Brown

Chinese stocks hit a two-year high Thursday, as new coronavirus cases fall inside the country and rise elsewhere around the world.

The blue-chip CSI 300 Index /zigman2/quotes/210598128/delayed XX:000300 -1.12% jumped 2.2% on the day to 4,206.72, its highest point since February 2018. The benchmark indexes of the Shanghai, Shenzhen and Hong Kong exchanges also rose roughly 2%.

What has been a bullish week in China comes amid volatility on U.S. markets, which have seen wild swings as investors juggle effects of the Democratic primary, increases in U.S. coronavirus cases, and an emergency rate cut from the Federal Reserve. Analysts told MarketWatch that U.S. equities would likely continue to experience a higher-than-normal period of volatility.

Chinese stocks have been on a 13% run over the last month, more than recouping the huge one-day fall when trading resumed after the long Lunar New Year break.

Shares in several big Chinese financial firms are driving the gains. The country’s largest insurer, Ping An Insurance /zigman2/quotes/202773380/delayed CN:601318 -1.37% , is up nearly 6% since Monday, as are China Merchants /zigman2/quotes/210188047/delayed CN:600036 -1.34% and Industrial Bank /zigman2/quotes/209353019/delayed CN:601166 -0.57%  , which all trade in Shanghai.


Wikimedia Commons/Baycrest
The Shanghai Stock Exchange Building.

China’s Finance Ministry said Thursday it has allocated 110.48 billion yuan ($16 billion) in coronavirus-related funding so far, in addition to other measures the country’s policy makers have made, such as tax cuts and loan relief.

In Hong Kong, the Hang Seng Index /zigman2/quotes/210598030/delayed HK:HSI -1.96% saw its biggest one-day jump in a month, with shares of tech companies leading the rise. AAC Technologies /zigman2/quotes/201351318/composite AACAY -0.53%   /zigman2/quotes/201441510/delayed HK:2018 -3.32%   , which supplies parts to Apple /zigman2/quotes/202934861/composite AAPL +0.03% , saw the biggest daily gain, at 5%. China’s two tech giants, Tencent /zigman2/quotes/207908563/composite TCEHY -0.16%   /zigman2/quotes/204605823/delayed HK:700 -0.81% and Alibaba /zigman2/quotes/201948298/composite BABA +0.39%   /zigman2/quotes/215112034/delayed HK:9988 -1.84% , both saw big increases on the day.

The yuan, meanwhile, has strengthened to a two-week high. The Chinese currency /zigman2/quotes/210561112/realtime/sampled CNYUSD +0.0044% eased away from the 7-yuan-to-the-dollar mark — which has tended to spook mainland investors — back down to 6.94.

Tanner Brown is a contributor to MarketWatch and Barron’s and producer of the Caixin-Sinica Business Brief podcast.

/zigman2/quotes/210598128/delayed
XX : China Securities Index
4,109.74
-46.55 -1.12%
Volume: 8.56B
Aug. 10, 2022 3:00p
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/zigman2/quotes/202773380/delayed
CN : China: Shanghai
¥ 40.40
-0.56 -1.37%
Volume: 46.01M
Aug. 10, 2022 3:00p
P/E Ratio
7.23
Dividend Yield
5.89%
Market Cap
¥731.52 billion
Rev. per Employee
¥3.31M
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/zigman2/quotes/210188047/delayed
CN : China: Shanghai
¥ 33.15
-0.45 -1.34%
Volume: 52.96M
Aug. 10, 2022 3:00p
P/E Ratio
6.75
Dividend Yield
4.59%
Market Cap
¥861.63 billion
Rev. per Employee
¥4.39M
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/zigman2/quotes/209353019/delayed
CN : China: Shanghai
¥ 17.35
-0.10 -0.57%
Volume: 31.16M
Aug. 10, 2022 3:00p
P/E Ratio
4.17
Dividend Yield
5.97%
Market Cap
¥363.96 billion
Rev. per Employee
¥6.32M
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/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
19,610.84
-392.60 -1.96%
Volume: 1.73M
Aug. 10, 2022 4:08p
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/zigman2/quotes/201351318/composite
US : U.S.: OTC
$ 1.86
-0.0099 -0.53%
Volume: 222,985
Aug. 9, 2022 3:46p
P/E Ratio
11.01
Dividend Yield
2.23%
Market Cap
$2.33 billion
Rev. per Employee
$72,872
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/zigman2/quotes/201441510/delayed
HK : Hong Kong
$ 14.58
-0.50 -3.32%
Volume: 3.54M
Aug. 10, 2022 4:08p
P/E Ratio
11.11
Dividend Yield
1.37%
Market Cap
$18.32 billion
Rev. per Employee
$566,423
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/zigman2/quotes/202934861/composite
US : U.S.: Nasdaq
$ 164.92
+0.05 +0.03%
Volume: 63.14M
Aug. 9, 2022 4:00p
P/E Ratio
27.25
Dividend Yield
0.56%
Market Cap
$2649.58 billion
Rev. per Employee
$2.52M
loading...
/zigman2/quotes/207908563/composite
US : U.S.: OTC
$ 37.75
-0.06 -0.16%
Volume: 3.40M
Aug. 9, 2022 4:00p
P/E Ratio
11.73
Dividend Yield
0.47%
Market Cap
$362.54 billion
Rev. per Employee
$774,224
loading...
/zigman2/quotes/204605823/delayed
HK : Hong Kong
$ 295.60
-2.40 -0.81%
Volume: 15.36M
Aug. 10, 2022 4:08p
P/E Ratio
11.80
Dividend Yield
0.54%
Market Cap
$2845.86 billion
Rev. per Employee
$6.03M
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/zigman2/quotes/201948298/composite
US : U.S.: NYSE
$ 91.19
+0.35 +0.39%
Volume: 16.74M
Aug. 9, 2022 4:01p
P/E Ratio
50.25
Dividend Yield
N/A
Market Cap
$239.65 billion
Rev. per Employee
$518,515
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/zigman2/quotes/215112034/delayed
HK : Hong Kong
$ 87.95
-1.65 -1.84%
Volume: 37.21M
Aug. 10, 2022 4:08p
P/E Ratio
49.58
Dividend Yield
N/A
Market Cap
$1881.24 billion
Rev. per Employee
$4.05M
loading...
/zigman2/quotes/210561112/realtime/sampled
US : Tullett Prebon
0.1481
+0.0000 +0.0044%
Volume: 0.0000
Aug. 10, 2022 8:03a
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