Stock markets in China had their best trading day in six weeks. Major indices strengthened due to demand for shares of companies that produce alternatively powered vehicles. The good mood was also helped by the massive interest of foreign investors.
The main Shanghai Stock Exchange index gained 1.5 percent on Monday, while the CSI300 index, which includes the most attractive titles, added as much as 2.4 percent. Monday’s trading day was the best in Shanghai in six weeks.
The growth driver was the segment of alternatively powered vehicle manufacturers (electric and hybrid cars), which grew by 6.3 percent. One of the strong impulses was the introduction of a solution for autonomous vehicles by the technology company Huawei.
The strong interest of foreign investors was reflected in a net inflow of capital into Chinese stocks of less than $3 billion. The Hong Kong Stock Exchange also benefited from interest in shares traded on Chinese markets, which rose by half a percent.
The influx of foreign capital has caught the attention of Chinese regulators, who closely monitor cash flows. China’s Securities and Exchange Commission is paying close attention to massive inflows of money to oversee the stability of China’s financial markets.
