The Strategist

Stocks in China hit highest in weeks amid stronger support measures

02/22/2024 - 06:30

Chinese stocks reach their highest point in weeks, writes Bloomberg.
Bloomberg reports, citing trade statistics, that the Chinese stock market reached its highest point in several weeks due to the authorities' tightening of support measures.

CSI 300 index increased 1.35% to 3456.87 points on February 21st. According to Bloomberg, this is the fifth straight session of growth. The newspaper claims that through trading connections with Hong Kong, foreign investors purchased Chinese stocks for a total of more than 13 billion yuan ($1.8 billion), which was the highest amount since July 2023. Tracking Chinese stocks in Hong Kong, the Hang Seng Index gained 2.24% to close at 5642.78 points, the highest level since January 4.

Beijing recently tried to stop the Chinese stock market's wild ride by outlawing quant fund trading. These funds evaluate, decide which investments to make, and carry out trades using automated algorithms and computational models.

Bloomberg notes that there may be hope that Beijing's regulatory measures to preserve the stock market are succeeding, at least for the time being, given the increase in Chinese indexes on February 21. The organization reports that state funds have been actively purchasing stocks, and Beijing's actions have recently become more definite.