The Shanghai Composite Index climbed above 5,000 points for the first time in seven years, the latest milestone in a world-beating rally.
China’s benchmark gauge added 1.5 percent to 5,023.09 at the close, with volume 37 percent above the 30-day average for this time of day. The measure advanced 8.9 percent this week, the biggest gain since December. Price swings are widening, with the Shanghai index’s 100-day volatility measure at the highest level in more than five years. The index plunged as much as 5.4 percent Thursday amid concern brokerages will limit margin lending, before recouping all of its loss.
Record growth in margin debt helped add more than $ 4 trillion to the value of mainland Chinese shares this year as the Shanghai Composite surged 55 percent. While bulls say gains are fueled by confidence that President Xi Jinping will succeed in turning the nation from an export-led manufacturer into a consumer-spending powerhouse, bears point to valuations as evidence of a bubble.
Source : Bloomberg