Shanghai Composite building on its last week's 7% gains – TradeTheNews

FXStreet (Barcelona) - The TradeTheNews Team comments on the key developments in the Chinese market – performance of the Shanghai Composite Index, plans and promises in the China Development Forum.

Key Quotes

Shanghai Composite is building on its 7% gains of last week, extending its rally above 3,600 to mark fresh 7 year highs.”

“Coming on the heels of the National People's Congress and the People's Political Consultative Conference, Beijing-hosted China Development Forum offered an opportunity for more rhetoric from high-ranking State Council members as well as international dignitaries.”

“Among the more notable remarks from local leaders, Vice Premier Zhang said China has "paid a price for very high growth of the past" and that it is not "sustainable", calling for even more focus on environment with zero tolerance" on air, water, soil pollution”.”

PBoC Gov Zhou announced policymakers will conduct further reform in capital markets, improving foreign direct investment while also allowing "more space and freedom" for equity and debt financing.”

“On the currency front, PBOC research bureau chief Lu saw the current Yuan level as appropriate just as the central bank restrained RMB depreciation again with a stronger setting.”

“Also of note, a research report from China Academy of Social Sciences (CASS) warned Q1 and Q2 GDP would slow further to 6.85% and 6.80% levels.”

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