Chinese shares reached new highs today (May 21st) after the release of downbeat Chinese manufacturing data, which prompted the country's central bank to commit to more stimulus.
Mainland Chinese stocks rallied to their highest level in four months after Beijing announced it will reform its financial markets this year, including measures to increase the yuan's role internationally, as well as changes in taxation, deposit rates and state-owned enterprises.
The government's guidelines for economic reform also plan for an experimental investment link between the Shenzhen and Hong Kong stock exchanges, only a few months after a link between Shanghai and Hong Kong was implemented.
The Shanghai Composite index ended 3.2 per cent up at 4,417.55, while Hong Kong's Hang Seng index closed 0.4 per cent higher at 27,693.54.
Elsewhere, Japan's Nikkei 225 added 0.1 per cent to 20,220.78, South's Korea Kospi lost 0.8 per cent to 2,123.36 and Australia's S&P/ASX 200 rose 0.9 per cent to 5,659.80.
StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.