China’s A-share market made history by achieving a remarkable milestone on Tuesday, marking a significant surge in trading activity. Following the week-long National Day holidays, the market experienced a surge driven by various stimulus measures. The ChiNext Index witnessed its highest single-day gain ever, reflecting the overall positive sentiment. The combined trading volume on the Shanghai and Shenzhen stock exchanges soared to an impressive 3.45 trillion yuan, equivalent to $488.9 billion, surpassing the previous day by 860 billion yuan, setting a new record.

As the trading day progressed, key indices reflected the market’s exuberance. The Shanghai Composite Index rose by 4.59 percent, the Shenzhen Component Index surged by 9.17 percent, and the ChiNext Index skyrocketed by an impressive 17.25 percent. Notably, 48 brokerage stocks hit their daily price limits, underscoring the strength of the financial sector. The semiconductor industry also saw a strong start, with over 200 stocks hitting their daily limits.

The morning saw a remarkable opening with the Shanghai Composite Index rising by a staggering 10.13 percent, the Shenzhen Component Index up by 12.67 percent, and the ChiNext Index surging by 18.44 percent. Within just 20 minutes of trading, the combined volume on the two exchanges exceeded 1 trillion yuan, setting a new speed record for reaching this milestone. However, the overwhelming market enthusiasm led to some trading disruptions and delays on various platforms due to the surge in activity.

Experts attributed the market rally to significant policies that have heightened investor expectations. Yang Delong, chief economist at First Seafront Fund in Shenzhen, emphasized the positive impact of monetary and fiscal policies on market confidence. Xi Junyang, a professor at Shanghai University of Finance and Economics, noted that the surge in trading volume and positive market sentiment reflect an improvement in investor confidence, supported by the rebound in undervalued assets and growth-oriented macro policies.

During a press conference, the National Development and Reform Commission (NDRC) outlined plans to accelerate pro-growth policies to address economic challenges. With a focus on counter-cyclical policy adjustments, boosting domestic consumption, and supporting struggling businesses, the government aims to stabilize the real estate market and strengthen the capital market. Efforts are underway to attract long-term investments, facilitate mergers and acquisitions, and safeguard individual investors’ interests.

In late September, the central bank of China unveiled a new set of monetary stimulus measures aimed at bolstering property sales, supporting the capital market, and fostering high-quality economic development. These initiatives have significantly boosted investor confidence. Notably, during the Golden Week holidays, mainland Chinese investors showed strong interest in opening new stock accounts, underscoring the positive sentiment prevalent in the market. Securities firms have geared up for heightened activity, reflecting the optimistic outlook among domestic investors.