China stocks at 7 year high

Recent stimulus measures in China boosted shares.

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By :  ,  Financial Analyst

Chinese stocks ended at fresh new highs today (April 27th), boosted by gains on Wall Street overnight and recent stimulus measures in China. The Shanghai Composite rose to a seven-year record, while the Hang Seng Index reached its highest level since December 2007.

"What's happening in the China market right now is retail money moving back into stocks after a long five-six year bear market. With yields going down from deposits to wealth management products and the property market not jumping back, retail investors have nowhere else to go except stocks," Stephen Sheung, head of investment strategy at SHK Private, told CNBC.

However, traders elsewhere in Asia traded cautiously ahead of several central bank meetings. The US Federal Reserve is to start a two-day policy meeting tomorrow while the Bank of Japan is set to release its monetary policy decision on Thursday.

The Shanghai Composite Index rose three per cent to 4,527.40 points and Hong Kong's Hang Seng gained 1.3 per cent at 28,433.59. Sydney's S&P-ASX 200 closed 0.8 per cent up to 5,982.70. 

Japan's Nikkei edged down 0.2 per cent to 19,983.32 and Seoul's Kospi lost 0.1 per cent to 2,157.54.

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