Chinese stocks jumped after reopening for the first time after the Lunar New Year break on Thursday, poised to close at a new record high.

The CSI 300 rose 2% to 5,922.07 points, taking it above its 2007 closing peak. During the break, Chinese stocks listed in Hong Kong gained 3.5% since onshore markets last traded, while the offshore yuan has been steady after hitting its strongest level versus the greenback in 32 months this week.

Even though the Chinese equity benchmark is trading at its highest valuation in nearly six years, traders remain bullish about the market, driven by strong corporate earnings, ample cash in China’s financial system and low borrowing costs. Thursday’s reopening amid the pandemic recovery is a stark contrast to 2020, when Chinese markets plunged by the most value on record after an extended Lunar New Year break.

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