Chinese stocks are rallying hard again today, even without another five-month old statement to propel the market higher.
At the lunchtime break the benchmark Shanghai Composite has jumped another 2.7%, adding to Wednesday’s 4% plus gains.
Telecommunications, up nearly 9%, are leading the charge higher after Miao Wei, head of the ministry of industry and technology, stated earlier in the session that the government will consider reform and mergers in the sector in the future.
Yes, 8% on that seemingly obscure comment.
Financials are also in vogue, rising more than 3% on the back of optimism, perhaps misplaced, that the Hong Kong-Shenzhen stock connect may still be implemented before the end of the year.
The gains of the past two sessions have seen the Composite rally 25%, greater than the 20% level deemed to be a technical bull market.
While the recent trend has been bullish, it’s still be a tough six months for the index. From its yearly peak struck on June 12, it’s still down 31%. Year-to-date it has risen just shy of 10%.
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