CHINA’S benchmark Shanghai Composite Index rose for a 10th straight trading day yesterday to the highest level since November 22, 2017.
Although the index mostly fluctuated under the previous closing, it still closed 0.1 percent higher at 3,425.34 points, extending consecutive rises since December 27.
Looking back, the most recent 10-trading-day winning streak on the index was recorded in March 2015, when the country’s stock market was in a strong bullish cycle.
The Shenzhen Component Index closed 0.24 percent higher at 11,464.2 points. It has been on a constant rising trend in the past 10 trading days, except for a dip of 0.09 percent on Wednesday.
Combined turnover on the two bourses stood at 477 billion yuan (US$73 billion), down from around 516 billion yuan on Wednesday.
Analysts call the strong performance at the beginning of the year a “spring rally.”
“Spring rallies are mainly driven by sparse data available on Q1 economic fundamentals, usually lower interest rates and relatively high risk preference at the start of the year,” Haitong Securities said.
Haitong said the weak performance in November and December 2017 was mainly due to “capital disturbance,” and the recent rally came with a higher liquidity level in the market.
Spring rallies often start between late January and early February and last five to nine weeks, Huachuang Securities said, citing data since 2010.
In 2017, the spring rally was between January 17 and March 24, which saw the Shanghai index up 5.35 percent, Huachuang said.
After rising for 10 straight days, the index has risen 4.57 percent.