(Image: REUTERS/Chaiwat Subprasom)
The stock indices of China achieved their biggest daily gains in 16 years on Monday (30), with shares recording the highest volume ever, as investors participated in an intense search for risky assets sparked by Beijing's latest stimulus measures.
Many investors, fearful of missing out on the wave of gains ahead of the weeklong holiday beginning Tuesday, helped the CSI300 index close 8.48% higher, taking its five-day advance to more than 25%. – the strongest ever recorded.
O index SSECof Shanghairecorded a total turnover of 1.17 trillion yuan ($166.84 billion) and rose 8.06%.
That took its gains in five days since last Tuesday, when Beijing began announcing stimulus measures to stem the economy's slowdown, to 21.4%, the highest since 1996.
This was also the best daily percentage gain for both indices since 2008.
The dizzying gains in Chinese stocks have been the result of the most aggressive stimulus measures since the pandemic announced by Beijing last week – ranging from interest rate cuts to fiscal support – in a bid to prop up its economy.
In particular, to boost actions, the People's Bank of China also introduced two new tools to strengthen the capital markets, one of which includes a swap program that allows funds, insurers and brokers to have easier access to financing to purchase shares.
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In addition to the positive momentum, there was news on Sunday that China's central bank will tell banks to reduce mortgage rates for existing home loans before October 31, as part of comprehensive policies to support the country's property market.
- In TOKYO, the Nikkei index fell 4.8%, to 37,919 points.
- In HONG KONG, the HANG SENG index rose 2.43% to 21,133 points.
- In SHANGHAI, the SSEC index gained 8.06% to 3,336 points.
- The CSI300 index, which brings together the largest companies listed in SHANGHAI and SHENZHEN, advanced 8.48%, to 4,017 points.
- In SEOUL, the KOSPI index fell by 2.13%, to 2,593 points.
- In TAIWAN, the TAIEX index registered a drop of 2.62%, to 22,224 points.
- In SINGAPORE, the STRAITS TIMES index rose 0.33%, to 3,585 points.
- In SYDNEY, the S&P/ASX 200 index advanced 0.70%, to 8,269 points.