A recent surge in the Chinese stock market, with the largest gains since 2008, was fueled by Beijing’s stimulus measures, boosting related ETFs and pointing to a potential bull market ahead.
Chinese Stock Market Surge
Chinese stocks saw their largest single-day gains since 2008, driven by new stimulus measures from Beijing to boost the economy. A-shares witnessed high turnover as investors rushed in to capitalize on the rally, with related ETFs like the KraneShares CSI China Internet ETF also experiencing significant growth.
Significant ETF Growth
ETFs like the Invesco Golden Dragon China ETF mirrored the positive performance, benefitting from China’s proactive approach involving interest rate cuts and support for the real estate sector. This monetary policy shift aims to stabilize the economy amidst the ongoing challenges.
Record Gains Before Holiday
As a week-long holiday approached, the CSI300 index surged by 8.5%, with a five-day gain exceeding 25%. The Shanghai Composite Index also showed impressive growth, reaching a turnover of 1.17 trillion yuan. Key stocks like JD.com and Alibaba are reaping benefits from the rally, hinting at a potential shift towards a bull market territory.
Source : China Stocks Experience Largest Decline Since 1997 – Latest Updates