Here's Why The Shanghai Market Went Ballistic Today

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Photo: Flickr/Brisbane City Council

As we mentioned earlier, Chinese shares had a monster day, rallying over 3%.What happened?

Basically a regulator talked about a allowing tons more investment in the domestic market.

Hong Kong newspaper the South China Morning Post reports:

China can sharply increase investment quotas for Renminbi Qualified Foreign Institutional Investment (RQFII) and QFII, China Securities Regulatory Commission (CSRC) chairman Guo Shuqing said on Monday.

Speaking at the Asia Financial Forum in Hong Kong, Guo said China could lift the investment quotas by a factor of 10.

Meanwhile, on the real economy side of things, there was a very nice reading in Chinese electricity consumption, which correlates nicely to GDP. Per Nomura (which made the chart below) electricity consumption in “secondary industries” grew over 7% year-over-year, which is a strong sign.

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Photo: Nomura

For more on what’s going on today, see here >

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