Chinese stock markets are on a tear again.
For the first time since the financial crisis, Chinese stocks are on the rise again.
It’s the best performance in more than a decade.
China has been on a stock market binge for the past three years.
Since the crisis in 2008, the Chinese stock market has doubled, and since then, the economy has contracted at a faster pace than it otherwise would have.
According to Bloomberg, China’s stock market is up 8.9% over the past year.
The Shanghai Composite is up 10.6% over that same time, and the Shenzhen Composite is down 4.2%.
China’s stock markets have continued to expand since the crisis.
This week, China added more than 1.4 trillion yuan worth of new equity, which equates to nearly 3% of the country’s total economy.
While China’s economic growth has been slow, the country is now seeing unprecedented growth.
After years of relative stagnation, the government has started implementing some of its plans to stimulate the economy.
The government is also looking to invest in infrastructure, and has announced an unprecedented investment plan to build 1,500 new megawatts of power plants.
A key focus of the Chinese government has been to create more jobs, which have seen the Chinese economy grow by over 10% per year since 2008.
As a result, the growth of the Shanghai Composite and Shenzhen are now both in triple digits.
In the US, the market is a little more volatile than China.
Shares of Apple (AAPL) rose 7.6%, but the S&P 500 index (SPX) is down 0.5%.
The Dow Jones Industrial Average (DJIA) is up 15.5%, but it is down 15.7%.
While stocks have surged, some of the largest companies in China are in the red.
These companies are: Gongxiang Chemical (GXCH), China’s largest chemical company; Hewlett-Packard Co. (HPQ), the world’s largest technology company; Shanghai Zhejiang Group (SZGY), China.
These companies are all facing steep challenges and will need to take a hit to keep their markets afloat.
In fact, China is facing a major stock market crisis as its government has embarked on an unprecedented plan to invest billions of dollars in infrastructure.