Chinese Stocks Surge on Aggressive Stimulus

Chinese stocks saw their largest single-day gains in 16 years on Monday, as investors rushed to buy in following a series of aggressive stimulus measures from Beijing. The CSI300 blue-chip index soared 8.5%, now up nearly 30% from its February low, signalling a bull market.

The Shanghai Composite Index surged 8.1%, with turnover reaching 1.17 trillion yuan. The rally was fueled by the People’s Bank of China’s new funding tools and rate cuts aimed at stabilizing the economy and shoring up capital markets.

Investor optimism also grew on news that mortgage rates would be lowered, and property purchase restrictions were lifted in several major cities, boosting shares of property and consumer goods companies.

The Hang Seng Index rose 2.4%, capping a month of significant gains, while property stocks soared as much as 8.2%. With financial markets closing for a week-long holiday, the stimulus measures have driven a wave of optimism across China’s financial landscape.

Mainland financial markets will be closed from October 1-7 for the National Day holiday.