The CSI 300 index of blue-chip stocks in Shanghai and Shenzhen jumped 5.9% on Monday – the tracker’s biggest one-day gain in over three years – after the US President tweeted that he would hold-off from raising tariffs on $200 billion of Chinese imports on March 1.
Mainland stocks are now in bull market territory after gaining over 25% since the start of the year. In February alone the CSI 300 climbed 16.5%, which, if sustained, will make it its best month since April 2015, according to the FT.
The rally is not yet enough to repair losses incurred in the second half of 2018, when trade war threats and growing signs of a slowdown sent shares into a downward spiral. China’s headline stock indices were among the worst performing for last year.
The onshore renminbi was also buoyed on the news, reaching its strongest level since the start of the trade war at 6.6718 per US dollar.