The Shanghai Composite Index rose 0.77% to 3,800 points, reaching a near 10-year peak.
This year, the index has increased by more than 13% under the leadership of sectors such as AI chips, small metals, and rare earth magnets, while many other sectors have seen slight declines.
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The Shanghai Composite reached its highest level in nearly a decade, increasing by 0.77% in the final session of the day.
The index has increased by more than 13% this year driven by growth from technology and rare materials sectors.
A large capital flow of about 1.2 billion yuan has poured into the market, supporting the upward trend.
What is the current level of the Shanghai Composite Index and what does this figure mean?
The index recorded a 0.77% increase in the afternoon session, reaching 3,800 points – the highest in nearly 10 years, reflecting the overall strength of the Chinese stock market.
This is an important indicator showing investor confidence in the economic outlook and long-term growth potential of the Chinese stock market, especially as the index has risen to this level after several years of staying lower.
Which sectors have contributed to the index growth this year?
Prominent sectors include AI chips, small metals, education, computing capabilities, rare earth magnets, and PCB boards, which have led the stock price increases.
The growth of these sectors reflects the trend of high-tech application and key resource exploitation, demonstrated by stock price increases and significant interest from professional investors and financial funds.
The market is witnessing a clear shift of capital into high-tech and strategic materials sectors, creating new momentum for the index's upward wave.
Analyst of the Chinese stock market, 2024
Which sector is under price pressure and why?
Sectors such as fertilizers, textiles, mining, banking, and agriculture are experiencing a declining trend amid clear market differentiation.
The reasons include economic cycle factors, supply and demand fluctuations, and macro risks affecting the profits and growth expectations of these traditional sectors.
How does large capital influence the market?
On the reporting day, about 1.2 billion yuan of large capital was invested in stocks, a move that typically boosts the upward trend and reinforces market vibrancy.
Large capital flow from funds and institutional investors plays a key role in creating long-term upward momentum, helping to balance and activate market sentiment during volatile periods.
What does the trend of the Shanghai Composite Index reflect about the Chinese economy?
The strong rise of the index, reaching the highest level in nearly a decade, indicates that the Chinese economy is in a recovery and positive growth phase.
The leadership of technology and strategic materials sectors indicates a structural shift in the economy towards high-tech and sustainable directions, aligning with the country's long-term development goals.
Frequently Asked Questions
What is the Shanghai Composite Index?
As an index representing the entire Chinese stock market, it reflects price fluctuations of many large and mid-sized stocks.
Why is reaching the index milestone of 3,800 points important?
This marker indicates the highest point in nearly 10 years, showing that the market is entering a sustainable upward trend.
How have high-tech industries impacted the index?
AI chip industries, rare earth magnets, and PCB boards are leading the price increase, helping to boost the overall rise of the index.
What impact does the pressure on traditional sectors have?
Causing significant differentiation in the market, however, it is not enough to pull back the overall index thanks to large capital flowing into technology sectors.
What role does large capital play in market trends?
This capital flow reinforces the upward momentum, instilling confidence in investors and signaling sustainable growth.
Source: https://tintucbitcoin.com/shanghai-composite-len-3-800-diem-cao-nhat/
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