China stocks are close to bull market highs after returning from Lunar New Year break

China stocks are close to bull market highs after returning from the Lunar New Year holiday

China’s domestic A-shares hovered near bull market territory on Monday, the first day after returning from the new moon holiday.

Wall Street is excited about Chinese tech — and likes one mega-cap stock in particular “The New Year’s bulls in China A-shares were mainly boosted by the stimulus monetary policy and reopening optimism,” Tina Teng, analyst at CMC Markets, told CNBC said in an email. For the first time in three years, Chinese people were free to travel without the hassle of quarantine or fear of lockdown for the most important holiday of the year, when families reunite in their hometowns to celebrate the new year or go on vacation together. Megan Zhang breaks down the cultural significance behind some Lunar New Year foods. There is still much excitement after their annual event, the community simultaneously celebrates the day and mourns the loss of those in California.

She added that supportive measures in the property sector and a loosened crackdown on China’s technology companies fueled further gains.” from flights, trains and cars to boats. Spring rally ahead Hao Hong, chief economist at GROW Investment Group, said China’s excess household savings will support a continued rally in share prices. 22 was the start of the Lunar New Year celebrations for the Year of the Rabbit.” We are at the beginning of intense speculation. In 2019, 421 million domestic trips were made over the holidays. China’s savings have a lot [took] as a sign of extreme risk aversion could be the fuel for a spring rally,” he said in a Sunday note. It is a time of new beginnings to bring in luck, happiness and prosperity.

“As households start spending again and save less, the economy will recover, and the market will respond,” he added. Overseas travel also soared after China finally reopened its borders earlier this month. Many dishes have symbolic meanings or are reserved for these occasions “It is the Year of the Rabbit, and the market has come alive again.” look now.88 million trips were made across the border, a 120% increase from last year, according to the National Immigration Administration.