A shareholder was observed at a securities hall in Hangzhou, the capital of Zhejiang province in east China, on September 24, 2024. This image, provided by Cfoto and Future Publishing through Getty Images, accompanies a report on the recent surge of China stocks.
China’s stock market soared to its highest performance in 16 years, boosted by recent economic stimulus measures that have increased investor confidence. The Shanghai Composite Index rose by 8.06%, marking its most significant daily gain since September 2008 and concluding a nine-day winning streak. The index ended September up by 17.39%, achieving its first monthly gain in five months and its best monthly performance since April 2015.
Similarly, the Shenzhen Composite Index experienced a 10.9% increase, its best day since April 1996, and recorded a 24.8% rise for September, its best month since April 2007. The China ADR index also saw substantial growth, gaining nearly 6%.
U.S.-listed shares mirrored this uptrend with various companies seeing notable gains. Shares of Kanzhun, a human resources company, surged by 9%. Online video company Bilibili also increased by 9%, while Tencent Music Entertainment rose by 2.9%. Online brokerage firm Futu Holdings saw a significant rise of 15%.
The KraneShares CSI China Internet ETF (KWEB) gained 4.2%, and the iShares China Large-Cap ETF (FXI) rose by 2.2%. Among individual companies, Alibaba’s U.S.-listed shares increased by more than 4%, and JD.com was up by 5.4%.
Chinese stocks have been on an upward trajectory following Beijing’s announcement of various economic stimulus measures aimed at supporting the weak property market, including interest rate reductions. State media reported that Chinese President Xi Jinping and other top leaders endorsed these initiatives.
Art Hogan, chief market strategist at B. Riley Securities, commented on the developments, indicating that while it remains unclear if the stimulus will fully revive the economy, the measures represent a significant first step. He emphasized the potential broad positive impact on the markets and the necessity for investors to adjust their expectations accordingly.
Additional optimism among U.S. investors has been noted, with billionaire hedge fund founder David Tepper expressing significant confidence in Chinese equities. Tepper revealed that following the Federal Reserve’s recent rate cut, he invested heavily in Chinese-related assets.
This report includes contributions from CNBC’s Gina Francolla, Nick Wells, Lim Hui Jie, and Evelyn Cheng.
