China’s stock market hits new record as government tries to curb speculation
China’s Shanghai Composite Index is off to a record high, as the government tries a sweeping crackdown on speculation and money laundering.
The benchmark index hit a record 10,500 on Tuesday, surpassing the previous high of 9,800 hit in June.
It is now trading at a record-breaking level of 2,600.
China’s benchmark Shanghai Composite jumped 7.7 percent Tuesday, the strongest gain in more than a year.
The Shanghai Composite is a popular benchmark for analysts because it tracks China’s economy and its stock market, which is one of the most important indicators for investors.
China has tried to limit speculation by imposing capital controls and by cutting the amount of money banks can offer investors.
The moves have hurt the Shanghai Composite, which rose 8.9 percent Monday to hit a new record high of 7,929.
It has fallen 8.5 percent since the start of the year, while the Dow Jones Industrial Average has gained 7.6 percent.
The U.S. dollar has also been in a bull market and has gained more than 6 percent in value.
The U.K. pound has also risen sharply since the beginning of the month, rising by nearly 8 percent in one day.
The dollar rose against the yen and other currencies after the Shanghai index jumped.
The yuan is up 3.4 percent against the greenback since the end of June, while Brent crude oil is up 2.7% and West Texas Intermediate is up 6.3 percent.