China’s A-share market soared to unprecedented heights on Tuesday, marking a historic milestone as trading volume surged to a staggering 3.45 trillion yuan. This remarkable achievement followed the week-long National Day holidays and was propelled by a slew of recent stimulus initiatives.

The ChiNext Index witnessed its most substantial single-day increase on record, underscoring the market’s bullish momentum. Trading activities across the Shanghai and Shenzhen stock exchanges reached an impressive 3.45 trillion yuan, representing a remarkable uptick of 860 billion yuan from the previous trading session.

By the day’s close, the Shanghai Composite Index had climbed by 4.59 percent, the Shenzhen Component Index surged by 9.17 percent, and the ChiNext Index skyrocketed by an impressive 17.25 percent. The financial sector demonstrated resilience, with 48 brokerage stocks hitting their daily price limits. Additionally, the semiconductor industry experienced a robust start, with over 200 stocks reaching their daily maximum thresholds.

The morning session saw an electrifying start, with the Shanghai Composite Index opening up by a remarkable 10.13 percent, the Shenzhen Component Index rising by 12.67 percent, and the ChiNext Index surging by an astonishing 18.44 percent. Within a mere 20 minutes of trading, the combined volume on the two bourses surpassed 1 trillion yuan, setting a new speed record for reaching this milestone.

The surge in market enthusiasm strained trading systems, leading to minor disruptions and delays across various platforms. Analysts attribute this market fervor to significant policy initiatives that have heightened investor optimism. Yang Delong, Chief Economist at First Seafront Fund in Shenzhen, highlighted the impact of monetary and fiscal policies on bolstering market confidence.

Xi Junyang, a professor at the Shanghai University of Finance and Economics, noted that the rally was underpinned by the resurgence of undervalued assets and supportive pro-growth policies. He emphasized that the surge in trading volume and positive market sentiment signal an uptick in investor confidence.

The National Development and Reform Commission (NDRC) underscored the government’s commitment to accelerating pro-growth policies to stimulate the economy. To address downward economic pressures, the focus will be on counter-cyclical policy adjustments, promoting domestic consumption, aiding struggling businesses, stabilizing the real estate sector, and fortifying the capital market.

In late September, the central bank unveiled a comprehensive monetary stimulus package aimed at bolstering property sales, enhancing the capital market, and facilitating high-quality economic development. These measures have significantly buoyed investor sentiment, as evidenced by the influx of mainland Chinese investors opening new stock accounts during the Golden Week holidays.

As the A-share market continues its record-breaking trajectory, stakeholders are closely monitoring the evolving landscape and the implications of these unprecedented market dynamics.