On November 11, two days following Donald Trump’s US presidential election victory, the Shanghai Composite has finally entered the bull market after climbing more than 20% from its January low.
Investors are evidently putting more chips behind potential winners from helping to “Make America Great Again,” i.e. rebuilding public infrastructure in the US.
Construction contractors, heavy equipment makers, airlines, and ports were among the biggest gainers on the Chinese stock market as the US presidential race came to a close.
The illustration showcases the most notable movers within the Shanghai Composite between Nov. 9 and Nov. 16, with market capitalization of at least 50 billion yuan (US$7.2 billion).
Jiangxi Copper surged over 26% on the back of the rally in the industrial base metal copper, a proxy for global economic growth.
China Communications Construction Company (CCCC), which carries out major infrastructure works, and Sany Heavy, a construction equipment producer, has both risen over 10% in the past week.
Despite the US president-elect’s call to put up more barriers to globalization, the equities market is definitely pricing in a more interconnected world with more demand for travel and shipping.
Ningbo Port has surged 8%, while China Southern Airlines rose 6%.
Financials, including banks and insurances companies, and domestically oriented companies traded sideways during the same period.
Kweichow Moutai, the producer of the fiery national Chinese liquor, fell over 1% as investors took profit from this stock, which has risen over 50% since January.