A-Share Sector Performance Reflects Global Trend

WSJ: In China, Old-School Stocks Are Back in Style
China’s stock-market recovery has taken on a retro feel in recent weeks, as Beijing resorts to debt-fueled investment spending to prop up the country’s growth.

“Old-economy” stocks, including state-owned companies in sectors such as steel and cement, which were supposed to have fallen out of fashion, have led the rebound in Chinese shares since Feb. 5, just before the annual Lunar New Year holiday.

While the CSI 300, a benchmark of leading Chinese shares, was up 4.2% since Feb. 5 as of Asian trading hours Monday, shares of basic-materials companies were up 6.9% and energy companies were up 4.7%. Financial stocks, dominated by state-owned banks, were up 5.9%.

Meanwhile, previously trendy sectors like retail and technology have done less well. Shares in consumer-focused companies that sell products from household appliances to automobiles were up 3%, while the ChiNext Price Index, a gauge of Chinese startup firms that operate in areas like tech and media, had edged up only 0.2%.
This is similar to the performance breakdown in U.S. stocks. It's a global rally in commodity producers.

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