Chinese Stock Market Boom

Encouraged by Beijing's newest batch of stimulus measures,

Chinese stocks soared to their greatest single-day gains in 16 years on Monday 30th of September.

While certain definitions of the market indicate that the CSI300 blue-chip index is in a bull market,

it has now gained about 30% from its February low.

Fearing that they would miss out on the surge before a week-long holiday that began on Tuesday,

many traders contributed to the rise in the CSI300 index, which at closing opened at a new high of 8.5%.

This contribution made its five-day increase the highest on record at over 25%!

Source: Reuters

How did this happen?

This is mostly the result of the extensive stimulus support Beijing has announced.

This support varies from massive rate cuts to fiscal assistance, that was revealed last week.

The good momentum was further enhanced by the announcement on Sunday from China's central bank that, as part of broad measures to assist the nation's struggling real estate industry, banks will be instructed to reduce mortgage rates on current house loans by October 31.

On the same day, Shenzhen and Shanghai lifted their restrictions on property purchases, while Guangzhou city likewise announced the removal of all limitations.