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Chinese stocks surge after the nation's top securities regulator got sacked

Getty Images

Whether due to the replacement of Xiao Gang as China’s chief stock market regulator or other factors, Chinese stocks enjoyed a barnstorming start to the week.

The benchmark Shanghai Composite index finished the session up 2.35% at 2,927.175 points, leaving it at the highest closing level seen since January 25.

All sectors finished in the black with the big boppers – materials, energy, financials and telecommunications – all gaining more than 2%.

The gains in Shanghai were mirrored in other mainland indices, suggesting that the rally was broad-based in nature.

While the gains could be for any number of reasons, one suspects that the appointment of Liu Shiyu as the head of China’s stock market regulator, the CRSC, contributed to the strong rally seen today.

However, with valuations in Chinese stocks still elevated – mainland markets trade at 15.1 times earnings, far higher than the 11.3 average for other emerging markets – whether the buying will last beyond the short term remains debatable.

The gains in China helped lift risk assets across the region, particularly stocks and commodity markets.

Here’s the final scoreboard as at 6pm AEDT.

Stocks

  • ASX 200 5001.22 , 48.43 , 0.98%
  • Nikkei 225 16111.05 , 143.88 , 0.90%
  • Shanghai Composite 2927.73 , 67.71 , 2.37%
  • Hang Seng 19428.07 , 142.57 , 0.74%
  • KOSPI 1916.36 , 0.12 , 0.01%
  • Straits Times 2660.12 , 3.25 , 0.12%
  • S&P 500 Futures 1923.75 , 9.25 , 0.48%

Forex

  • USD/JPY 112.73 , 0.19 , 0.17%
  • USD/CNH 6.5207 , -0.0065 , -0.10%
  • AUD/USD 0.7166 , 0.0017 , 0.24%
  • NZD/USD 0.6659 , 0.0030 , 0.45%
  • AUD/JPY 80.77 , 0.33 , 0.41%
  • EUR/USD 1.1114 , -0.0018 , -0.16%
  • GBP/USD 1.4243 , -0.0161 , -1.12%
  • USD INDEX 96.795 , 0.1950 , 0.20%

Commodities

  • Gold $1,216.35 , -$11.46 , -0.93%
  • Silver $15.23 , -$0.10 , -0.62%
  • WTI Futures $30.17 , $0.53 , 1.79%
  • Copper Futures ¥36,210 , ¥570 1.60%
  • Iron Ore Futures ¥365.50 , ¥17.00 , 4.88%

10-Year Bond Yields

  • Australia 2.464%
  • New Zealand 3.090%
  • Japan -0.008%
  • Germany 0.214%
  • UK 1.416%
  • US 1.764%

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