Chinese stocks see strong rally on Friday - PingWest

Chinese stocks see strong rally on Friday

Chinese stocks see strong rally on Friday

November 4, 2022 10:30 pm

The Hang Seng surged 5.3% on Friday, its biggest weekly gain in 11 years. The Shanghai Composite Index rose 2.4%, for a weekly gain of 5.3%, its biggest gain in more than two years.

US-listed Chinese stocks surged in early trade, with the Nasdaq Golden Dragon China Index (.HXC) on track for its best week in eight months after its worst monthly performance on record in October.

E-commerce giants JD.com and Alibaba rose more than 15%.

On the mainland, the Shanghai Composite rose 2.7% and is heading for a 5.6% weekly gain. The blue-chip CSI300 was up 3.7% on Friday and 6.8% on the week.

Early on Friday, it was reported that the first on-site inspections of US-listed Chinese corporations had ended ahead of schedule, potentially boosting the capital market's confidence in China-sensitive assets.

However, it is too early to determine whether Chinese companies will pass the audit. Bloomberg said the PCAOB may file an initial report on key findings over the coming weeks, which could point out deficiencies or room for improvements in areas such as internal controls and record keeping. 

Also, the China Securities Regulatory Commission released a signal to prop up the financial market. On Friday afternoon, Beijing time, the regulator held an internal meeting, expressing that it will deepen financial reform and opening up and unswervingly follow the path of financial development with Chinese characteristics.

"It is necessary to deepen the reform of the capital market, expand the institutional opening up, and better serve high-quality development and high-level tech self-reliance," the meeting pointed out. "It is a critical agenda to focus on building a modern capital market with Chinese characteristics, and the Party's overall leadership over the capital market must be upheld and strengthened." 

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