From Bloomberg via Yahoo Finance, September 29/30:
Chinese stocks extended one of their most remarkable turnarounds in history, soaring for a ninth straight day as government stimulus entices investors back to one of the most beaten-down markets worldwide.
The CSI 300 Index jumped as much as 6.5% on Monday, the most since 2015, as traders rushed to buy shares in the last session before a week-long holiday. The index, which lost more than 45% of its value from a 2021 high through mid-September, has since soared more than 20% — heading for a technical bull market. Its rally last week was the biggest since 2008.
The extended rally came after three of China’s largest cities relaxed rules for homebuyers, while the central bank also moved to lower mortgage rates. The latest measures were among the key elements of a sweeping stimulus package released Tuesday that also included interest rate cuts, freeing-up of cash for banks, as well as liquidity support for the stock market.
While the market has experienced several similar-sized rallies in recent years only to plumb new depths, investors are betting the market’s current momentum may be sustainable in at least the near term. In a sign of continued frenzy, combined turnover on both the Shanghai and Shenzhen bourses exceeded one trillion yuan ($143 billion) in a little over 30 minutes since trading began Monday.
“The pace of the turnaround is clearly reflective of how oversold the market was,” said Charu Chanana, global markets strategist at Saxo Markets. “There is a clear belief that this time is different when it comes to authorities’ support for the markets.”
Brokerages were among the top gainers, with Citic Securities Co. hitting the 10% daily upside limit. Almost all of CSI 300’s component stocks were in the green.
The fear of missing out is also spreading offshore, with hedge funds selling US technology stocks and piling into mining and materials firms....
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At the moment the CSI 300 index is up another 207.20 (+5.60%) at 3,910.88.
