What I Learned This Week

China deserves a "stability premium" for its strong leadership. A buy signal for China’s stock brokers?

Last Friday, the Shanghai Composite Index (SHCOMP Index, CNY 3,361) closed above the critical 3,300 level for the first time since the index’s major crash in January 2016, when it lost 23% of its value in a single month. Moreover, the Hang Seng China Enterprises Index (HSCEI Index, 11,295) closed last Friday at its highest level since August 2015, while our favorite value-style/large-cap index, the Shanghai Stock Exchange SSE 50 A Share Index (SSE50 Index, CNY 2,715) closed at its highest level in 25 months. Finally, the broad-based Shanghai Shenzhen CSI 300 Index (SHSZ300, CNY 3,822) closed at its highest level since December 2015, and two trading days later, the Chinese yuan broke above…

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