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China's benchmark stock index posts biggest daily gain since 2008

Published 09/30/2024, 02:54 AM
Updated 09/30/2024, 03:46 AM
© Reuters. FILE PHOTO: A woman looks at monitors showing stock information at a brokerage house in Jiujiang, Jiangxi province, China June 19, 2018.  REUTERS/Stringer/File photo
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(Reuters) -China's stock markets have been on a tear since Beijing rolled out a flurry of stimulus measures last week and over the weekend to jolt the beaten-down market and revive a slowing economy.

On Monday, the blue-chip CSI 300 index closed up 8.48% to its highest level in more than a year, after clocking its best weekly performance in nearly 16 years last week.

Here are some comments from market analysts and investors:

DICKIE WONG, EXECUTIVE DIRECTOR OF RESEARCH AT KINGSTON SECURITIES, HONG KONG

"It's really a big turnaround, the policies are so intensive, we have never seen such clear instruction to stop housing prices declining and support the stock market."

"Many foreign investors are afraid of missing out, local retail investors are asking me what they should add to, institutional investors are rushing to the market to catch up, and the large inflows have pushed the Hang Seng Index up to 21,000."

CHI LO, SENIOR MARKET STRATEGIST FOR ASIA PACIFIC, BNP PARIBAS ASSET MANAGEMENT, HONG KONG

"You look through the whole government, everybody senior is now involved in making sure there's something going through the system in terms of easing. When you put all this together, it is not really surprising to see the market reacting so positively."

"The big question everybody has in mind is whether this is a turning point. I wish I knew. But what I can say is this is definitely not a point to get out of the Chinese market."

"When to get in, how much to get in, I think there is no conviction so far, and we do need certain indicators to show there's conviction in the market and conviction in the government."

MICHAEL MCCARTHY, CHIEF COMMERCIAL OFFICER AND STRATEGIST, MOOMOO AUSTRALIA

"We offer trading in Hong Kong shares and these sorts of measures have turned attention towards Hong Kong listings and there's definitely been a pickup in trading happening with us. I wouldn't say the whole world has turned that way but we've certainly seen a pickup in trading to China-exposed shares. Of course, you can trade them on the Australian bourse as well - Fortescue has been one of the top performers here, as a pure iron-ore play."

KENNY NG, STRATEGIST, CHINA EVERBRIGHT SECURITIES INTERNATIONAL, HONG KONG

"The market is still surprised by China's policy support and momentum is still continuing."

Ng said he has been deluged with calls from clients asking for stock and strategy tips, and his latest Hang Seng target price, with more calls in the last few days than in half of the previous month.

WANG QING, CHAIRMAN, SHANGHAI CHONGYANG INVESTMENT MANAGEMENT, SHANGHAI

"FOMO (fear of missing out) among investors is prevalent. We maintained a high gross risk exposure before the slew of policy announcements and have since enjoyed the ride. We will likely deploy the cash available if there were to be a technical correction in the near term. Property sector and fiscal policies are key to watch."

ALICE SHEN, PORTFOLIO MANAGER, VANECK, SYDNEY

"Over the past six months, no-one was talking about China at all - avoiding it at all costs. But now our clients are asking."

WEI LI, MULTI-ASSET QUANT SOLUTIONS PORTFOLIO, BNP PARIBAS ASSET MANAGEMENT, HONG KONG

"The larger-than-expected stimulus from the People's Bank of China and the clear signals from the Politburo meeting suggest a shift toward more forceful and coordinated macroeconomic easing."

"The announcement from the Politburo, however, marks a more decisive shift, indicating that fiscal stimulus will follow, alongside explicit pledges to stabilise property markets and directly support the stock market. This is likely to boost market confidence and trigger further rallies in China's equity market."

© Reuters. FILE PHOTO: A woman looks at monitors showing stock information at a brokerage house in Jiujiang, Jiangxi province, China June 19, 2018.  REUTERS/Stringer/File photo

VASU MENON, MANAGING DIRECTOR, INVESTMENT STRATEGY, OCBC, SINGAPORE

"The Chinese stocks have seen a spectacular rebound, but investors should not get carried away and assume that it will go up in a straight line. China's market can be extremely volatile and a similar sharp rebound in April and May of this year, gave way to profit taking subsequently after economic data missed forecasts, raising concerns that China's growth target was at risk. So, a lot hinges now on whether the latest stimulus will indeed help the economy and whether China will follow through with aggressive fiscal stimulus as well."

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