It now looks safe to say that Beijing’s efforts to underpin the nation’s stock market – including the arrest of “malicious” short-sellers and blanket ban on selling for some market participants – is working.
Today the benchmark Shanghai Composite index put on a further 2.44%, taking its gains from the low of July 9 to 22.3%.
Yes, it’s business-as-usual once again. The index has now put on 23% in just 10 trading sessions. The bull, for the moment, is back.
The index now sits just 376 points, or 9.1%, below the 4,500 point level cited by some analysts that may see some of the extreme measures implemented to prop up the index removed by policymakers.
The exuberance in Shanghai was also replicated in other mainland indices with the CSI 300, containing the 300 largest-listed firms in Shanghai and Shenzhen, adding 2.25%.
As opposed to recent sessions where it was either small or large-cap stocks that rallied, rarely both, small-cap stocks also did well today.
The Shenzhen Composite, CSI 300 and tech-heavy ChiNext index all finished with gains of more than 2%.
What’s in store tomorrow? On recent form it’s looking likely to be another gain.