Chinese Stocks Surge Amid Interesting Speculations

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The key Shanghai Composite index closed up 4.3 percent, while the blue-chip CSI300 index surged 4.7 percent. In Hong Kong, the benchmark Hang Seng index pulled back from earlier highs, up 2 percent late Wednesday.


Comments from Chinese central bank governor Zhou Xiaochuan that a stock market trading link between Hong Kong and Shenzhen could be launched before the end of 2015, fanned risk sentiment earlier in the session. However, reports have since emerged at mid-day saying that Zhou’s comments were made on May 27, according to an update from Dow Jones citing Chinese data provider Wind.


As such, Hong Kong Exchanges and Clearing halved gains to 4.4 percent, while other mainland brokerages such as Citic Securities and Haitong Securities bounced up 8.4 and 7.5 percent respectively.


Share markets in China were also bolstered by data which showed activity in China’s services sector expanded at its fastest pace in three monthsin October