Chinese markets calm down in year of the Monkey
Chinese shares are currently facing a stage of quiet recovery. Really, the year of the Monkey has just brought us a long-awaited sense of hope and calm. Chinese stock markets aren’t an exception here.
Last week China’s major benchmark soared 3.5% to 2860.02 – an amazing result in the first trading week since the break of the Lunar New Year. This month the index demonstrated a 4.5% growth. That’s a partial recovery from January’s tumultuous sessions, when stocks slumped amid a strong sense that Beijing had completely lost its grip on the country’s economic policy.
Last week, Chinese stock market regulator allowed up to nine firms to go public. That’s a definite step forwards restoring the market’s major function as a solid financing platform. Secondly, it was the second clutch of this year’s approvals, a partial unfreezing of initial public offerings right after Beijing suspended them last summer.
On Saturday, the country’s official Xinhua News Agency informed that the chairman of Agriculture Bank of China, Liu Shiyu is going to replace Xiao Gang, a top securities regulator, thus marking another milestone in the Chinese government’s vigorous efforts to get out of the recent mess.