- The Shanghai Composite rose 3 percent in August, pushing the index’s gains to more than 8 percent in 2017
- China’s yuan just recorded its strongest month in 2017, appreciating 2 percent against the U.S. dollar
- China’s stock markets have been buoyed by strong performance in the financial sector, with the biggest four state-owned banks capping August with decent earnings
China’s markets sizzled this summer, but experts say numerous risks loom — so keep the champagne on ice.
The Shanghai Composite rose 3 percent in August, extending July’s rise and pushing the benchmark index’s gains to more than 8 percent in 2017. Similarly, China’s yuan recorded its strongest month in 2017, appreciating 2 percent against the U.S. dollar as the currency accelerated to 5 percent year-to-date.
Experts have attributed the boost in Chinese markets to better-than-expected growth in the world’s second-largest economy. Stronger growth has been largely due to Beijing’s meddling in the markets and economy to prevent embarrassing swings ahead of a major leadership transition in the fall, experts say — but that playbook can’t be sustained.