Chinese stocks are ripping higher yet again

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Following on from Friday’s huge gain, Chinese stocks are once again ripping higher on Monday.

The benchmark Shanghai Composite index has piled on a nifty 3.2%, taking its gain from Thursday’s close last week to an impressive 5.55%.

At 3864.1, it is also at the highest level seen since July 27.

The telecommunications sector is the standout performer in the session so far, rising a near-unbelievable 9.16%. Industrials and utilities, up 5.31% and 4.04% respectively, are also doing well.

Financials, up only 1.37%, is the relative underachiever.

Like the benchmark index in Shanghai, other mainland indices are also surging higher.

The SSE 50, comprising the 50-largest stocks by market capitalisation in Shanghai, has jumped by 2.7% while the CSI 300, made up of large-cap stocks listed in Shanghai and Shenzhen, is higher by 2.86%.

Like their larger peers, small-cap stocks are also on a tear. The CSI 500, Shenzhen Composite and ChiNext indices are all up by more than 2.9%.

Weak economic data released over the weekend, something that merely fuels the belief that further monetary stimulus from the PBOC is coming, along with continued talk of direct government intervention to underpin stock market gains, appears to be working for the moment.

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