ART position trade system show bullish turn around on the United China SSE ETF
China shares surge on fresh stimulus plans from Beijing
http://www.marketwatch.com/story/china-shares-surge-on-fresh-stimulus-plans-from-beijing-2015-10-12
Chinese markets rallied Monday after the central bank announced fresh stimulus to boost the economy, and expectations build that more could be on the way.
The Shanghai Composite Index
SHCOMP, +3.28% closed up 3.3% while Chinese firms in Hong Kong led the Hang Seng Index
HSI, +1.21% up 1.2%.
Bonds investors cheered the new stimulus: Benchmark yields, which move inversely to prices, on five-year Chinese government bonds fell sharply to their lowest since late 2012 to 2.979%, down 0.08 percentage point. Yields on 10-year government bonds fell to their lowest since 2010 to 3.19%.
China’s central bank guided the yuan
USDCNY, +0.0095% traded on the mainland stronger for the seventh straight day against the U.S. dollar. The yuan strengthened by as much as 0.42% to 6.3187 in the late afternoon against the U.S. dollar, the largest move up since it was devalued. In Hong Kong, the offshore yuan followed suit, trading to its strongest level since the devaluation.
The cross-asset rally came after China’s central bank announced over the weekend that it would expand a pilot program to boost banks’ lending abilities. The plan, currently in place in Shandong and Guangdong, allows banks to pledge a variety of assets, including bank loans, to borrow from the central bank. It will be expanded to nine provinces including Shanghai and Beijing.