It’s not often that a major Chinese stock exchange gains market value for just two days, but that happened in June, when the Shanghai Stock Exchange rose over 50 per cent.
The surge is a result of the surge in foreign investment in China, which has brought with it more capital flows to the country and a demand for financial products.
The exchange rose 4 per cent in the past year.
“As the Chinese economy continues to strengthen, China is becoming a much more attractive investment destination for investors and the country’s stock market is gaining value,” said John Dehlin, senior research associate at CMC Markets.
“This will also be a big boon to China’s tech sector as the country has become a hub for tech startups.”
China’s market value surged by 50 percent to $17.7 billion in the June quarter.
Source: CMC China Markets