2009: A bull year for Chinese stocks

The Year of the Ox was a bullish year for China's stock market. The benchmark Shanghai index rebounded 80 percent in the last 12 months, after plummeting 65 percent in 2008. Zheng Junfeng checks the thrills and spills of 2009 and what's next in what will soon be the Year of the Tiger.

2009 has been an eventful year on the Chinese stock market.

The benchmark Shanghai index finished the year's last trading day at 3200 points. It capped off a remarkable turnaround from the start of the year when it was just 1800 points. 2009 was the fifth-best performing year in Chinese stock market history.

Zhang Gang, chief strategist of Southweat Securities, said, "With the macro-economic recovery, the stock market was rising non-stop in the first half of the year. But in the second half, the market fluctuated due to policy changes and inflation expectations. Both domestic and global economic situations impacted on the market and momentum responded accordingly."

The government's 4 trillion yuan stimulus package spurred the bull to run ahead. Ten key industries received policy and fiscal support, which in turn boosted market momentum.

140 million stock investors shared that momentum. Though most have not fully recovered what they lost in 2008, they look forward to 2010, the Year of Tiger.

Analysts predict the momentum will at least continue into the first half next year, while investors are holding hope the Year of the Tiger will bring a roaring trade.