China's Stock Surge: A Ceasefire and Financial Rally
China’s stocks remained steady but poised for their largest weekly increase in over seven months. A ceasefire between Israel and Iran improved market sentiment, leading financial shares and brokerage stocks to surge. Improved market fundamentals and growing global investor demand for diversification further boosted Chinese stocks.
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- China
China's stock market experienced little movement on Friday, although it remained on course for its largest weekly gain in more than seven months. This surge has been driven primarily by financial shares, following a ceasefire agreement between Israel and Iran which boosted investor sentiment.
The blue-chip CSI 300 Index remained flat by midday, whereas the Shanghai Composite Index fell by 0.2%. Meanwhile, Hong Kong's Hang Seng Index dropped by 0.1%. Nonetheless, Chinese brokerage stocks saw significant gains buoyed by easing geopolitical tensions globally and a renewed investor appetite for risk, as noted by Morgan Stanley analysts.
Tianfeng Securities jumped 10% on Friday, while the CSI 300 Index advanced 2.6% this week, marking its strongest performance since November 2024. Notably, the United States and China have reached a rare earth shipment accord, and despite the positive market trends, Xiaomi's record-high surge contrasts with declines in other automakers.
(With inputs from agencies.)
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