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The bull market is back for Chinese stocks

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China’s Shanghai Composite and Hong Kong’s Hang Seng Index are cracking into bull market territory Monday as stocks surge across Asia.
Hong Kong (CNN Business)China’s Shanghai Composite(SHCOMP) and Hong Kong’s Hang Seng Index(HSI) are cracking into bull market territory Monday as stocks surge across Asia.
The Shanghai Composite(SHCOMP) led markets in the region and closed up 5.7%, its best single-day percentage gain since July 2015. It’s now more than 20% above recent lows from late March — the traditional benchmark for a bull market.
The Hang Seng(HSI) closed up 3.8%, also entering a bull market.
Some of the best performers on both indexes included Chinese financial stocks. Regulators in Beijing had earlier loosened rules on margin financing, the practice of investing with borrowed funds.
“The signal from the regulators is clear: They are pushing for the development of margin trading and short selling business in China,” wrote Ma Ting Ting, an analyst for Chinese securities firm Guosheng Securities, in a research note Sunday. “We expect regulators to continue to boost stock market activity and try to guide even more funding from banks and insurers into the stock market.

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