China’s A-share market saw another significant surge on Tuesday, the first trading day following the week-long National Day holidays, fueled by a range of recent stimulus measures.
The ChiNext Index recorded its largest single-day gain on record, while total trading volume on the Shanghai and Shenzhen stock exchanges reached 3.45 trillion yuan ($488.9 billion), up 860 billion yuan from the previous trading day, a record high.
At Tuesday’s close, the Shanghai Composite Index was up by 4.59 percent, the Shenzhen Component Index had shot up by 9.17 percent, and the ChiNext Index had skyrocketed by 17.25 percent.
Financial stocks remained robust with 48 brokerage stocks hitting their daily price ceilings. The semiconductor sector saw a strong opening, with more than 200 stocks hitting their daily limits.
The Shanghai Composite Index opened up by a breath-taking 10.13 percent, the Shenzhen Component Index was up by 12.67 percent, and the ChiNext Index surged 18.44 percent at the opening.
Just 20 minutes after the market opened on Tuesday, trading volume on the Shanghai and Shenzhen bourses surpassed 1 trillion yuan, the fastest time ever to reach this amount.
The enthusiasm for the stock markets overwhelmed the trading systems, leading to some trading hiccups and delays, which were reported in multiple trading platforms.
“Significant policies have lifted investor expectations. The intensified efforts in monetary and fiscal policy to promote sustained economic recovery are further lifting market confidence,” Yang Delong, chief economist at Shenzhen-based First Seafront Fund, told the Global Times on Tuesday.
Xi Junyang, a professor at the Shanghai University of Finance and Economics, told the Global Times on Tuesday that the rally is being supported by a rebound in the prices of previously undervalued assets and pro-growth macro policies.
“The surge in trading volume and strong market sentiment indicate an improvement in investor confidence,” he added.
Two men view a stock market monitor in Nanjing, East China’s Jiangsu Province on October 8, 2024. Photo: VCG
During a press conference on Tuesday, the National Development and Reform Commission (NDRC) said that the country will accelerate the implementation of incremental pro-growth policies.
With the economy facing downward pressure, the country will focus on counter-cyclical policy adjustment, and ramp up efforts to boost domestic consumption and improve people’s livelihoods.
It will give more support to businesses having operational difficulties, and try to stabilize the real estate market and shore up the capital market, the NDRC said.
Addressing the capital market, the NDRC said that pro-growth economic policies are being fast-tracked for implementation.
Efforts are underway to attract long-term investment, support mergers and acquisitions, and protect individual investors.
In late September, China’s central bank announced a new package of monetary stimulus measures to support property sales and shore up the capital market, and to create better conditions for China’s high-quality economic development, which have significantly boosted investor sentiment.
During the Golden Week holidays, investors in the Chinese mainland were seen lining up to open new stock accounts, while employees from some securities companies returned to work early in preparation for the market opening.
