[ad_1]
Fueled by news of economic stimulus measures, Chinese stocks have enjoyed their best one-day rally since 2008.
Chinese equities saw their biggest single-day gain in 16 years on Sept. 30, with many domestic stocks posting their highest ever trading volumes.
Domestic and foreign investors are rushing to join a blistering rally in Chinese stocks that has been caused by the government in Beijing announcing several stimulus measures meant to boost the struggling economy.
China’s CSI 300 blue-chip index is now up nearly 30% from its low this year, which was reached in February.
Much of that gain has been achieved in less than a week following news that Beijing is taking steps to jolt China’s sluggish domestic economy.
The CSI 300 index has now risen 25% in the last five days, its strongest rally on record.
The broader Shanghai Composite Index recorded total trading volume of $166.84 billion U.S. as it rose 8.1% on Sept. 30.
The Shanghai index has now gained 21% in the last five trading days, its strongest showing since 1996.
Hong Kong’s Hang Seng Index rose 2.4% on Sept. 30, bringing its gain on the year to 24% and making it Asia’s best performing stock market in 2024.
The red-hot rally comes as officials in Beijing lower interest rate cuts and pump money into the economy to help spur growth that has slowed coming out of the Covid-19 pandemic.
The People’s Bank of China (PBOC) has announced a new swap program that enables fund managers, insurers and brokers easier access to funding to buy stocks.
Additionally, China’s central bank has told banks to lower mortgage rates for existing home loans before Oct. 31 as part of sweeping efforts to support the country’s property sector that has been dealing with a debt crisis.
The supportive economic measures have reversed investor sentiment towards Chinese equities, which have languished over the past two years while U.S. stocks rallied.
[ad_2]
