Stock exchanges in China and Hong Kong started a new trading week with growth. Investors’ optimism is due to positive news from the world’s second strongest economy. They mainly strengthened energy stocks, which are sensitive to the course of the economic cycle.
The main stock index on the Shanghai Stock Exchange added 0.8 percent on Monday, as did the CSI300 index, which includes so-called blue chips, the most sought-after shares in the market. Investor optimism came after data from industrial companies were published. It was confirmed that the Chinese economy breathed a strong recovery in the first two months of this year.
The profits of industrial enterprises grew more than expected. They strengthened mainly energy stocks, which added four percent, as measured by the sub-index of the Shanghai Stock Exchange. However, the CSI300 index is still about 15 percent weaker than at the beginning of the year.
Shares on the Hong Kong Stock Exchange also strengthened slightly. The Hang Seng Index added 0.3 percent. The index, which includes only Chinese companies, rose 0.2 percent. Here, too, the optimism enjoyed by the Chinese stock exchanges was expressed.