China’s stock exchanges in Shanghai and Shenzhen are gearing up for a series of tests to ensure seamless trading following a surge in transactions. The combined turnover of the two bourses hit a record high of 2.6 trillion yuan before the National Day holidays, fueled by various stimulus measures and investor optimism.
Amidst the recent stock rally and increased demands on trading systems, the Shenzhen Stock Exchange will conduct system connectivity tests, allowing securities firms to test their technological readiness for post-holiday trading. Similarly, the Shanghai Stock Exchange will undergo a similar test to enhance platform stability during peak trading periods.
Following recent transaction delays, the Shanghai Stock Exchange initiated a test to bolster system stability. China’s supportive policies, including interest rate cuts and reserve requirement reductions, have played a significant role in boosting investor confidence and market performance.
On the eve of the National Day holidays, the Shanghai Composite Index surged by 8.06 percent, while the Shenzhen Component Index jumped by 10.67 percent, reflecting the positive market sentiment. During the holiday closure, Hong Kong’s stock market witnessed a steady rise, with the Hang Seng Index climbing by 10.2 percent.
Hong Kong’s Financial Secretary highlighted the market’s positive momentum, with the Hang Seng Index reaching a two-and-a-half-year high. The surge in market activity has led to a notable increase in daily turnover, indicating growing investor participation and market buoyancy.
Amidst the market optimism, the China Securities Depository and Clearing Corporation expedited its account review processes due to a surge in new securities account openings. This move aimed to manage the high volume of account applications and verification requests efficiently.
Market analysts anticipate continued upward momentum in both Hong Kong and A-share markets post the National Day holidays. With recent monetary stimulus measures and policy support, the Chinese government aims to strengthen the capital market and drive high-quality economic development.
UBS, a leading financial services firm, revised its year-end target price for the MSCI China Index, citing improved policy coordination and corporate governance reforms. Market experts predict a reversal of capital flows back into Chinese equities as investors seek to capitalize on the ongoing market rally.
Looking ahead, with a positive outlook for A-shares and historical trends favoring October performance, market analysts foresee continued market growth in the coming weeks. The recent policy initiatives and market dynamics signal a promising trajectory for Chinese equities in the near term.
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