China’s stock trading has surged to over USD142.5 billion daily on the Shanghai and Shenzhen stock exchanges, driven by a recent economic stimulus package. The trading volume exceeded CNY1 trillion for three consecutive days, reflecting a bullish market sentiment.
The Shanghai Stock Exchange Composite Index rose by 2.8 percent, approaching the 3,100 mark, while the Shenzhen Stock Exchange Component Index jumped by 6.7 percent. The ChiNext Index in Shenzhen saw a record-breaking 10 percent surge, with daily trading volume hitting CNY400 billion.
The food and beverage sector experienced significant gains, particularly in liquor stocks, with nearly 20 stocks hitting trading limits or surging by more than 10 percent. Real estate and non-banking financial sectors also saw substantial growth, while bank stocks faced a downturn.
Private equity firms are optimistic about the market outlook as monetary and fiscal policies drive market confidence. The government’s recent easing measures, including interest rate cuts and reserve requirement ratio reductions, have bolstered investor sentiment and stimulated stock market activity.
Industry experts predict an increase in investors’ risk appetite as the market rebounds. The introduction of new policies aimed at supporting listed companies and facilitating stock buybacks has further boosted market confidence.
The strong performance of the stock market is attributed to the government’s proactive measures to stimulate economic growth. The financial authorities’ decisive actions have been well-received by investors, leading to a surge in trading volumes and stock prices.
Analysts highlight the impact of the government’s stimulus package on market dynamics, emphasizing the role of policy interventions in shaping investor behavior and market trends. The recent market rally is a reflection of the positive response to the government’s economic initiatives.
Overall, the Shanghai and Shenzhen stock exchanges have witnessed a significant uptick in trading activity, driven by investor optimism and government support measures. The stock market’s robust performance underscores the resilience of China’s financial markets amid economic challenges.