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China’s Shanghai Composite closed 3,473 gaining 14% in 2020, its highest level since February 2018. China, being the source of the Covid-19 pandemic and employing total lockdown was the first major country to reopen it's economy.

 Shanghai Composite 2020

Chinese stocks recovered the first out of major stock indices after the Covid-19 pandemic swept the world from Wuhan as the city came out of lockdown.

Being right in the epicenter of Covid-19 having begun in Wuhan China we look at the Asia-Pacific region as the world continues to look toward a recovery from the coronavirus pandemic. The Shanghai Composite  surged as investors pushed risk assets to sky-high valuations on expectations that widespread vaccine distribution in 2021 will reignite economic growth. Central banks across the world pushed out unprecedented stimulus measures.

At years end a Sino-Europe investment deal was signed after Brexit was completed in the midt of heated US-China political tensions and a Sino-Australia trade war. 

China’s Shenzhen component was a standout among the region’s major markets rising 38.73% in 2020. The country’s CSI 300 index tracks the biggest firms listed on the Chinese mainland rose 27.21% for the year.

2020 performance for major equity indexes in the Asia-Pacific

- Based on CNBC calculations:

  • Australia’s S&P/ASX 200: -1.45% '
  • China’s CSI 300: +27.21%
  • China’s Shanghai composite: +13.87%
  • China’s Shenzhen component: +38.73%
  • Hong Kong’s Hang Seng index: -3.4%
  • India’s BSE Sensex: +15.75%
  • India’s Nifty 50: +14.9%
  • Indonesia’s Jakarta Composite: -5.09%
  • Japan’s Nikkei 225: +16.01%
  • Malaysia’s FTSE Bursa Malaysia KLCI Index: +2.42%
  • Philippines’ PSE Composite Index: -8.64%
  • South Korea’s Kospi: +30.75%
  • Singapore’s Straits Times index: -11.76%
  • Taiwan’s Taiex: +22.8%
  • Thailand’s SET Composite index: -8.26%
  • Vietnam’s VN-Index: +14.87%

 Shanghai CSI 300 2020

China’s CSI 300 index which tracks the biggest firms listed on the Chinese mainland rose 27.21% for the year. The Shenzhen component rose 38.73% in 2020.

How Global Indices fared in 2020

The yuan rallied in line with stocks after an iniital fall from March panic selling to close the year having rallied against the US dollar as massive US QE weakened the dollar. The stronger yuan also sated much of the trade war angst and "China virus" chatter.

 CNH D 12 31 2020

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