Chinese stocks, led by small-caps, are rallying again

Photo: A Chinese beer drinker at the Qingdao festival. Photo: Getty

For a second consecutive session Chinese stocks are rallying.

At the mid-session break the benchmark Shanghai Composite index has put on an additional 1.37%, taking its two-day rally close to 2%. It’s large by international standards but modest when it comes to the wild swings recently seen in Shanghai.

Despite five days of volatility, the index currently sits down just 0.06% for the week.

The positivity in Shanghai is extending to other Chinese indices, particularly those dominated by small-cap stocks.

The CSI 300 has added 1.56% while the CSI 500, comprising largely small-cap stocks, has jumped 2.86%. Elsewhere the Shenzhen Composite and tech-heavy ChiNext have surged by 2.64% and 2.97% respectively.

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