China stocks rise to 7-year high on bullish outlook; Hong Kong also up

miércoles 22 de abril de 2015 00:57 GYT
 

* CSI300 +1.8 pct; SSEC +1.8 pct; HSI +0.3 pct

* China's bull market has just begun, not a bubble - state media

* Green tech, nuclear stocks rise on growth hopes

By Samuel Shen and Pete Sweeney

SHANGHAI, April 22 (Reuters) - Chinese stocks resumed their upward momentum early on Wednesday, hitting new seven-year highs after a commentary in state media said the bull market "has just begun."

China's bull run "has support from China's grand development strategy and economic reforms," and blue chip stocks are still "undervalued", the article, which was published on a website run by the official People's Daily newspaper said. It called the surge in share prices a reflection of China's growth potential and denied that it was a bubble.

Traders said such bullish comment from state media boosted investor confidence amid rising controversy over whether regulators consider the market too frothy, following recent government moves to expand short-selling activities.

"It gives psychological support to the market," said Wu Kan, head of equities trading at Shanghai-based investment firm Shanshan Finance.

"Obviously, regulators hope to see a steady and healthy bull market," he said, pointing out that there's enough liquidity to support further growth, as China will likely conduct further monetary easing.   Continuación...