Chart of the day: The roar of China’s ChiNext

China’s ChiNext index of small-caps has staged a turnaround, delivering the biggest gain among all gauges in China and Hong Kong in the first quarter. After two years of declines, the index is back in favour with traders as valuations fall to reasonable levels and the government ratchets up support for companies in innovative industries. The measure was the worst performer in 2017. Meanwhile, the SSE 50 Index of the most valuable companies on the Shanghai exchange, including Kweichow Moutai and Ping An Insurance (Group), has dropped the most among the benchmarks over the past three months on concern that valuations were elevated amid crowded trading. In Hong Kong, the Hang Seng Index eked out a gain of just 0.6 per cent as the city’s stocks were roiled by surging yields in US Treasuries and the threat of a global trade war.