The Shanghai Composite – China’s benchmark equity index – has hit 8.5-month high on US-China trade optimism.
As of writing, the index is trading at 3,068 – the level last seen on June 13, 2018. The gains seen today are likely triggered by Wall Street Journal reports stating that the US and China are closing on a trade deal.
Chinese stocks have gained more than 25 percent in the last two months on China’s stimulus efforts and easing US-China trade tensions and could rise further, as indicated by the bullish technical development.
The 50-day moving average (MA) has crossed the 100-day MA from below, confirming a billish crossover.
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