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Chinese Stocks Soar Over 400 Points, Yuan Rebounds, Foreign Capital Buys In
This afternoon, the A-share market suddenly experienced a significant surge, with the Shanghai Composite Index, which had previously broken through the 3000-point mark, returning to above 3000 points. The Shenzhen Component Index fell to a low of 10,402 points during trading but rebounded to close at the highest point of the day, 10,838 points, with a surge of over 400 points. Among the many indices, the ChiNext Index saw the highest increase, reaching 3.6%.
The market exhibited a distinct preference for small and medium-cap stocks. The Shanghai Stock Exchange 50 Index ( SSE 50 ) rose less than the CSI 300 Index, which in turn rose less than the CSI 500 and CSI 1000 Indices. The CSI 500 Index closed at its highest point, with a gain of 2.4%. It had fallen to a low of 5,594 points during the trading session but ended at 5,820 points, with an increase of over 200 points.
The highest increase in the ChiNext Index is closely related to the significant rise of Contemporary Amperex Technology Co., Limited (CATL). By the close of trading, CATL had increased by 5.17%, which also drove the new energy index up by 3.6%.
Currently, the European markets have opened, and for the time being, the UK, Germany, and France are almost flat, with neither significant gains nor losses. The Japanese stock market, which closed earlier, also ended flat.At present, the Hong Kong stock market has not yet closed, but the Hang Seng Index has also seen a significant rebound. It once fell by more than 2.3% at its lowest, and then rebounded together with the A-shares, rising by up to 1% at its highest.
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The fluctuations in the Hang Seng Technology Index were even greater, falling by 3.6% at its lowest, and rising to 2.9% before the closing of A-shares. However, after 3 p.m., there was a certain degree of decline.
The FTSE China A50 Index, traded overseas, also showed a clear rebound, rising from a 1.7% decline to a current gain of 0.5%.
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In terms of offshore exchange rates, the Chinese yuan has experienced significant fluctuations over the past two days, with a pattern of falling first and then rising.
Yesterday, the yuan against the US dollar once broke through 7.2, but then quickly rose again, returning to within 7.15.
This morning also saw a round of decline, falling to around 7.19, but it rose again in the afternoon, reaching 7.15.
During this period, the Chinese yuan exchange rate has shown clear fluctuations, and there has been no continuous one-way depreciation.
The central bank has also issued a special article summarizing past historical situations. After the previous two times the yuan broke through 7, it did not continue to depreciate and quickly returned to below 7 yuan.
There is no strict positive correlation between the bilateral exchange rate between the Chinese yuan and the US dollar and the US Dollar Index. An increase in the US dollar does not necessarily mean a depreciation of the Chinese yuan.The market supply and demand relationship plays a decisive role in exchange rates. Currently, domestic enterprises have a strong willingness to exchange currency, and foreign investment funds are also increasing their purchases of RMB assets.
This is mainly reflected in the foreign capital's multiple times oversubscription to the RMB government bonds issued by our country. Previously, several government bonds and bills were issued in Hong Kong and Macao, with oversubscription multiples reaching more than 4 times.
Encouraged by the significant rebound of A-shares, the three major US stock indexes also rose in the futures market. At present, the Nasdaq, S&P, and Dow Jones have risen by 0.45% to 0.75%, and it is very likely that US stocks can end the previous five consecutive days of decline tonight.
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