Chinese stocks hit record high

Just weeks after the February slump, Chinese stocks rose to a record high Wednesday, the Wall Street Journal reported. The Shanghai Composite Index rose 25.18 points to reach 3,057.38 and break the previous high set on February 26, the day before the market plunged 8.8%, its largest single-day loss in a decade. The gains, which came on the heels of Beijing strengthening rules to stop listed companies from using the proceeds from share sales to purchase stocks, was led by real estate companies. The bump in this sector was a response to speculation that the central bank will raise interest rates at a faster pace. Property companies would benefit from this as their holdings are denominated in local currency. The interest rate rumors were good for banks, too, as they also have considerable yuan-denominated assets.