China has seen its stock market soar to record levels in 2017, as China’s government and the central bank have pumped billions of dollars into the economy to stimulate demand.
The country’s biggest banks are expanding, and foreign investors have been pouring money into the country’s real estate market.
The Shanghai composite, which tracks the Shanghai Stock Exchange, hit a record high on Monday, with the index surging 2.9% as of 3:59 p.m.
The stock market is the fastest-growing in the world and is often the main benchmark for other nations, including the U.S. and Japan.
China’s stock market rose 7% in 2016, according to data compiled by Bloomberg.
Its share of global equities rose to 6.9%, and the country was the biggest trading partner of the Shanghai Composite Index.
But while the country has been expanding, it is now trying to boost domestic consumption, with subsidies, government spending and other incentives helping to drive the economy.
China is the world’s biggest consumer of foreign exchange, according an Oxford University study last year.
Its stimulus package includes a $7.5 billion tax cut in May, which was approved by parliament on Tuesday.
It is also boosting subsidies for the state-owned enterprises that make up much of the economy, with a package of subsidies ranging from $4 billion to $10 billion.
In a statement, China’s central bank said it would boost interest rates for the next few years.
China has also announced new stimulus measures for the housing market, including new subsidies to developers.
The central bank has also been trying to bolster demand by easing restrictions on foreign ownership and easing restrictions in other areas.
Its foreign-exchange reserves fell by $2.4 trillion in 2017 to $3.6 trillion, while the yuan fell by more than 6% to a record low.
But it is still worth a lot to investors, and the yuan’s rise has helped drive foreign investment in China.