China Shares Rise After Reopening From Holiday
Chinese stocks rose sharply Thursday, catching up to a rally in global equities after the market was closed for a weeklong holiday.
The Shanghai Composite Index finished up 3% at 3143.46, putting its gains at nearly 7% since the lowest point of a painful summer selloff.
The benchmark is still off about 39% from its June peak, although “a stabilization in the market is in sight,” wrote Goldman Sachs analyst Kinger Lau in a note.
Small to midcap stocks are still trading at expensive levels but overall the mainland market has fallen to trade at a ratio of 11 times price-to-earnings on a market-capped basis, making it more attractive for investors. Margin financing, the money from local brokerages that helped the market rally, has also unwound, falling nearly 60% from its peak in June, Goldman Sachs added.
A number of other markets in Asia fell, amid concerns about a slowdown in emerging markets.
Hong Kong’s Hang Seng Index closed off 0.7% and Japan’s Nikkei Stock Average was down 1%. The latter was coming off a six-day winning streak that had taken it to its highest level in almost one month.