Bulletin
Investor Alert

New York Markets Open in:

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

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

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    CSI 300 Index (000300)
  • X
    Ping An Insurance (Group) Co. of China Ltd. A (601318)
  • X
    China Merchants Bank Co. Ltd. (600036)

or Cancel Already have a watchlist? Log In

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 +0.61% 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 +0.36% , is up nearly 6% since Monday, as are China Merchants /zigman2/quotes/210188047/delayed CN:600036 -0.11% and Industrial Bank /zigman2/quotes/209353019/delayed CN:601166 +1.59%  , 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 -2.03% saw its biggest one-day jump in a month, with shares of tech companies leading the rise. AAC Technologies /zigman2/quotes/201351318/delayed AACAY -0.56%   /zigman2/quotes/201441510/delayed HK:2018 -1.44%   , which supplies parts to Apple /zigman2/quotes/202934861/composite AAPL -2.58% , saw the biggest daily gain, at 5%. China’s two tech giants, Tencent /zigman2/quotes/207908563/delayed TCEHY -4.20%   /zigman2/quotes/204605823/delayed HK:700 -1.76% and Alibaba /zigman2/quotes/201948298/composite BABA -2.57%   /zigman2/quotes/215112034/delayed HK:9988 -3.53% , 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 -0.1276% 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
5,023.06
+30.64 +0.61%
Volume: 15.15B
May 11, 2021 3:00p
loading...
/zigman2/quotes/202773380/delayed
CN : China: Shanghai
¥ 70.28
+0.25 +0.36%
Volume: 50.95M
May 11, 2021 3:00p
P/E Ratio
10.42
Dividend Yield
3.13%
Market Cap
¥1259.85 billion
Rev. per Employee
¥3.54M
loading...
/zigman2/quotes/210188047/delayed
CN : China: Shanghai
¥ 53.84
-0.06 -0.11%
Volume: 32.85M
May 11, 2021 3:00p
P/E Ratio
14.72
Dividend Yield
2.33%
Market Cap
¥1370.80 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/209353019/delayed
CN : China: Shanghai
¥ 22.35
+0.35 +1.59%
Volume: 100.09M
May 11, 2021 3:00p
P/E Ratio
7.00
Dividend Yield
3.59%
Market Cap
¥470.54 billion
Rev. per Employee
¥6.15M
loading...
/zigman2/quotes/210598030/delayed
HK : Hong Kong Exchange
28,013.81
-581.85 -2.03%
Volume: 2.38M
May 11, 2021 4:09p
loading...
/zigman2/quotes/201351318/delayed
US : U.S.: OTC
$ 5.29
-0.03 -0.56%
Volume: 28,930
May 10, 2021 3:52p
P/E Ratio
28.97
Dividend Yield
0.21%
Market Cap
$6.47 billion
Rev. per Employee
$73,611
loading...
/zigman2/quotes/201441510/delayed
HK : Hong Kong
HK$ 41.20
-0.60 -1.44%
Volume: 4.64M
May 11, 2021 4:08p
P/E Ratio
29.10
Dividend Yield
0.73%
Market Cap
HK$50.21 billion
Rev. per Employee
HK$570,931
loading...
/zigman2/quotes/202934861/composite
US : U.S.: Nasdaq
$ 126.85
-3.36 -2.58%
Volume: 88.07M
May 10, 2021 4:00p
P/E Ratio
28.46
Dividend Yield
0.69%
Market Cap
$2172.90 billion
Rev. per Employee
$1.86M
loading...
/zigman2/quotes/207908563/delayed
US : U.S.: OTC
$ 74.90
-3.28 -4.20%
Volume: 3.20M
May 10, 2021 3:59p
P/E Ratio
31.08
Dividend Yield
0.24%
Market Cap
$734.96 billion
Rev. per Employee
$1.36M
loading...
/zigman2/quotes/204605823/delayed
HK : Hong Kong
HK$ 584.50
-10.50 -1.76%
Volume: 34.62M
May 11, 2021 4:08p
P/E Ratio
31.28
Dividend Yield
0.27%
Market Cap
HK$5708.14 billion
Rev. per Employee
HK$10.55M
loading...
/zigman2/quotes/201948298/composite
US : U.S.: NYSE
$ 219.53
-5.78 -2.57%
Volume: 17.27M
May 10, 2021 4:00p
P/E Ratio
25.88
Dividend Yield
N/A
Market Cap
$613.69 billion
Rev. per Employee
$622,130
loading...
/zigman2/quotes/215112034/delayed
HK : Hong Kong
HK$ 207.60
-7.60 -3.53%
Volume: 24.01M
May 11, 2021 4:08p
P/E Ratio
25.26
Dividend Yield
N/A
Market Cap
HK$4766.29 billion
Rev. per Employee
HK$4.86M
loading...
/zigman2/quotes/210561112/realtime/sampled
US : Tullett Prebon
0.1556
-0.0002 -0.1276%
Volume: 0.0000
May 11, 2021 7:08a
loading...

This Story has 0 Comments
Be the first to comment
More News In
Markets

Story Conversation

Commenting FAQs »

Partner Center

World News from MarketWatch

Link to MarketWatch's Slice.