News

Big day on Chinese markets as A50 heads back towards 200 day moving average.

CMC Markets

The China A50 cash index is currently up 5% on Friday's close. Bank shares have risen sharply on media reports that authorities have held discussions on a pilot program that would allow banks to raise capital by issuing preference shares. This news comes on top of the weekend announcement of a 7% gain in export orders during August. The index is now getting into the range of its 200 day moving average. Tomorrow's data on China's retail sales, industrial production and fixed asset investment might determine if the index can break through this index indicating more potential upside or if the 200 sma will prove to be overhead resistance.