Chinas BlueChip Index Hits Over 5Year High on Biden Win

SHANGHAI, Nov 9 (Reuters) – China and Hong Kong shares jumped on Monday, with the blue-chip index hitting a more than five-year high, as Joe Biden’s victory in the U.S. presidential election raised hopes of a thaw in the frosty Sino-American trade relations.

The CSI300 index rose 2.2% to 4,990.84 at the end of the morning session, its highest since June 18, 2015, while the Shanghai Composite Index gained 1.9% to 3,375.05.

In Hong Kong, the Hang Seng index climbed 1.6% to 26,129.78, while the Hong Kong China Enterprises Index was up 1.7% at 10,675.21.

Democrat Biden’s victory in the battleground state of Pennsylvania over the weekend put him over the threshold of 270 Electoral College votes he needed to clinch the presidency, ending days of nail-biting suspense.

Analysts and traders said the win would help the A-share market, at least for the short term, on hopes of improved Sino-U.S. trade ties, though the U.S. containment strategy is unlikely to change much.

The Biden victory is good for China stocks as it erases uncertainty, said Li Huiyong, vice general manager of Hwabao WP Fund Management Co. “Some money is flowing back and investors will re-focus on fundamentals.”

Investors via the Stock Connect linking mainland and Hong Kong purchased 18.8 billion yuan ($2.86 billion) worth of China equities by midday, Refinitiv data showed.

Chinese state media struck an optimistic tone about Biden’s win on Monday, saying relations could be restored to a state of greater predictability, starting with trade.

Aiding sentiment, Chinese trade data showed the country’s exports grew at the fastest pace in 19 months in October.

($1 = 6.5828 Chinese yuan)

(Reporting by Luoyan Liu, Samuel Shen and Andrew Galbraith, Editing by Uttaresh.V)

Source: Reuters

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