China shares rise after Jinping remarks boosted sentiment

The stock markets in China increased following remarks from new Communist Party chief Xi Jinping, in which he said that the country could be on the path of economic recovery.
Both the onshore China shares and Hong Kong Market performed better than its peers in the Asian region after Xi said that his key priorities include tax reform, urbanization and more role for market forces to determine resource prices.

The CSI300 Index of the top Shanghai and Shenzhen shares increased 3.9 percent and the Shanghai Composite Index increased 3 percent to 2,034.6. The index has crossed the
2000mark for the first time since 27 November, 2012.

Onshore China shares increased and led the gains in Hong Kong as the Hang Seng Index rose to 1.4 percent at 22,094.2 till its mid-day trading break. The China Enterprises Index of the top Chinese listings in Hong Kong rose 2 percent.

The gains in the Chinese stocks and turnover in Hong Kong helped in boosting the index. Experts believe that it is too early to assume that there will be a long term recovery in the markets but the rise is a positive trend and will boost investor sentiment in the markets in the larger Asian region.