China stocks surge on clarity in US elections
China shares jumped on Monday, as investors' hopes were raised by Joe Biden’s victory in the US presidential election.
At close, China’s benchmark indexes the Shanghai Composite Index rose 1.86 percent to 3,373.73 points. The Shenzhen Component Index climbed 2.19 percent to 14,141.15 points. The bluechip index CSI300 soared 1.96 percent to 4,981.35 points.
Turnover on the two major bourses expanded to 1.08 trillion yuan (US$160 billion).
Almost industry sectors climbed with tech and securities shares leading the gains.
“Chinese stocks are seeing a bull market,” Haitong Securities said in a note.
“Overseas uncertainties were erased as Joe Biden won the 2020 US presidential election,” China Industrial Securities said.
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-US trade ties, though the US containment strategy is unlikely to change much.