Shanghai Stocks Soar on Biden Win

China's blue-chip index jumps on U.S. election results.
Jennifer ChanNov 09,2020,18:44

Shanghai's blue-chip CSI300 index rose 2.0% to 4,981.35 points, its highest closing level since June 2015, while the Shanghai Composite Index added 1.9% to 3,373.73. The tech-oriented ChiNext and the STAR50 both advanced 3%.

The moves indicate optimism over a potential reset of worsening Sino-American relations. While traders and investors in China or the U.S. are not pollyannish about U.S.-Chian relations as the two biggest economies compete for global dominance, there is a hopeful sense that tensions, which have run dangerously high, can begin to ease. According to Reuters, analysts and traders say the Biden victory would help the A-share market in the short-term at least. Chinese tech, in particular, the focus of Trump's fury, was able to exhale a bit. Still, Biden was not given a mandate to go easy on China, and will likely implement his own strategy to attempt to contain China through teaming up with America's allies in Europe. Such a containment effort will only be so effective, and will unlikely thwart China's growth. Investors in both the U.S. and China, however, will welcome a measure of predictability from Biden, a break from the unpredictability and chaos emanating from the Trump White House. ,

According to Reuters, Chinese trade data China's exports grew at the fastest pace in 19 months in October. ($1 = 6.5761 Chinese yuan renminbi)/

Topics:China. Shanghai, Stocks. etc