HONG KONG – Mainland Chinese stocks soared more than 10 per cent at the open on Oct 8 as traders resumed a blistering rally after a week-long break, hoping for more economy-boosting initiatives from Beijing which unveiled stimulus measures last month.
The Shanghai Composite Index surged 10.13 per cent and the Shenzhen Composite Index on China’s second exchange piled on 11.37 per cent.
However, Hong Kong’s Hang Seng Index slipped 4.18 per cent on profit-taking after a healthy run-up last week.
The gains in China come ahead of a planned news conference later in the morning in which policymakers are expected to flesh out the policies.
Investors have been racing back into stocks on the mainland and in Hong Kong since authorities announced the most aggressive stimulus measures since the Covid-19 pandemic to reverse a long period of tepid economic growth.
Turnover soared as heavy buying strained brokers and trading systems. On Sept 30, the CSI300 and Shanghai Composite notched their largest gains since 2008.
Before the Golden Week holiday break, hedge fund manager David Tepper said on CNBC the moves were encouraging enough that he would buy “everything” on China.
But gains have been so large that others now urge caution. AFP, REUTERS
