The Shanghai and Shenzhen stock exchanges are gearing up to conduct comprehensive tests on their platforms following a surge in transactions. The combined turnover of these exchanges hit a record high of 2.6 trillion yuan. To ensure seamless trading post the National Day holidays, the Shenzhen Stock Exchange is set to carry out system connectivity tests, allowing securities firms to evaluate their technological readiness for post-holiday trading. Similarly, the Shanghai Stock Exchange is also slated to undergo testing procedures.

Transaction delays on September 27 prompted the Shanghai Stock Exchange to conduct stability tests on September 29, particularly during peak order submission periods. China’s recent implementation of favorable policies, such as reducing reserve requirements and interest rates to bolster economic recovery, has significantly elevated investor optimism. Consequently, the recent stock market upsurge has placed increased demands on trading systems.

On the final trading day before the National Day holidays, the Shanghai Composite Index surged by 8.06 percent, closing at 3,336.50 points, while the Shenzhen Component Index saw a notable 10.67 percent jump to close at 10,529.76 points. Notably, the Chinese stock markets were closed from October 1 to Monday.

In contrast, Hong Kong’s stock market witnessed a continuous rise, with the Hang Seng Index climbing by 10.2 percent from September 30 to Friday. The overall market sentiment has seen a significant improvement since the beginning of the fourth quarter, as highlighted by Hong Kong’s Financial Secretary Paul Chan Mo-po. The Hang Seng Index reached a two-and-a-half-year high, surging by approximately 33 percent over the past 15 trading days.

Moreover, the daily turnover in the Hong Kong stock market soared to about HK$192 billion in September, double the August figures. The surge in securities account openings prompted the China Securities Depository and Clearing Corporation to advance the opening of its account platform and identity verification system to manage the surge in account reviews.

Experts anticipate that the positive momentum in the Hong Kong stock market may persist, with expectations of a strong opening for A-shares post the National Day holidays. Notably, recent monetary stimulus measures and market support initiatives announced by China’s central bank, top securities regulator, and financial regulator have exceeded both domestic and global investors’ expectations.

Looking ahead, analysts project that the short-term momentum of A-shares is likely to continue until mid-October, historically a favorable period for Chinese stocks. UBS has revised its year-end target price for the MSCI China Index, reflecting improvements in policy coordination, US rate adjustments, and advancements in corporate governance reforms. Market watchers anticipate a reversal of capital flow from Chinese equities to stocks in Japan and Southeast Asia as investors seek to capitalize on the ongoing rally.