China’s stock market soars over 22% for the largest single-day gain in history
The post China’s stock market soars over 22% for the largest single-day gain in history appeared on BitcoinEthereumNews.com.
Amid an influx of aggressive government stimulus measures, the Chinese stock market is reacting positively, hitting new historical highs. To this end, the Beijing Stock Exchange 50 Index recorded an unprecedented surge on September 30, soaring by 22%, marking the most significant single-day gain in the index’s history. Notably, the index, which tracks the 50 largest equities on the Beijing Stock Exchange, closed at 880.82 CNY, up 163.79 points from the previous 717.02 CNY. Beijing Stock Exchange 50 Index one-year chart. Source: LSEG This impressive rally comes after a challenging year for the Chinese stock market. The index saw substantial volatility throughout the year, particularly from March through August, when it hovered below 700 for extended periods. Other indices, such as the mainland’s CSI 300, closed 8.5% higher, posting its biggest gain since 2008, while Hong Kong’s Hang Seng Index surged over 4.2%. CSI China 300 Index chart. Source: Barchart Investors are also expressing exuberance, considering that data indicates that call options volume on Chinese exchange-traded funds (ETF) has skyrocketed to an all-time high. According to Goldman Sachs Investment Research data, the rolling four-day sum of call options on Chinese ETFs hit 6.7 million contracts, signaling a historic level of optimism among investors. China ETF call volume chart. Source: Goldman Sachs Investment Research This massive spike essentially reflects a potential fear of missing out (FOMO) among investors following the recently announced stimulus package. Impact of Chinese government stimulus package The market rally emerged after Beijing unveiled stimulus packages, including interest rate cuts and $114 billion to boost the equity market. Before this intervention, the market had been dragged down in recent months, characterized by a weakening economy, a property crisis, weak consumption, and escalating geopolitical tensions. Part of the boost came from the People’s Bank of China (PBOC), which introduced…
Filed under: News - @ September 30, 2024 2:22 pm