(Bloomberg) -- It’s a week for the record books in China’s markets. Investors have embraced the government’s coordinated fiscal and monetary stimulus, with the Hang Seng Index now on track for the best week in 26 years.
The equity gauge is set for the biggest weekly gain since 1998, the year China vowed unequivocal support for Hong Kong’s dollar peg and its economy after the market crashed.
The MSCI China Index is outperforming global stocks by 15% this week. That’s the most since 2007.
In terms of valuations, MSCI China is still trading at 9.4x forward P/E, which is cheap historically.
And the CSI 300 saw more than $100 billion in turnover in past two days.
Taking a longer-term view of turnover, the past two days still pale in comparison to 2014.
NOTE: Ernest Tsang is a market content producer for Bloomberg TV. The observations are his own and not intended as investment advice. For more markets analysis, see the MLIV blog.
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