On September 24, 2024, a shareholder was in a securities business office in Hangzhou, the capital of Zhejiang Province in eastern China.
Chief Photography | Future Publishing | Getty Images
China's stock market rose to its best single day in 16 years. Recent economic stimulus measures boosted the optimism of market investors, and related US ETFs also rose sharply.
this Shanghai Composite Index The index rose 8.06%, its best day since September 2008 and ending a nine-day winning streak for the index. The stock is up 17.39% through September, its first monthly gain in five years and its best monthly performance since April 2015.
this Shenzhen Component Index It closed up 10.9%, its best one-day gain since April 1996.
this China ADR Index The increase was nearly 6%.
U.S. listed human resources company stocks Kanzhun Soared 9% with online video companies Bilibili. Tencent Music Entertainment Online brokerage firms rose 2.9% Futu Holdings up 15%.
China ADR Index
this Kingsoft CSI China Internet ETF (KWEB) rose 4.2%, while iShares China Large Cap ETF (FXI) up 2.2%.
U.S. listed stocks Alibaba An increase of more than 4%, while Jingdong rose 5.4%.
Chinese stocks have been rising since Beijing last week rolled out a series of economic stimulus measures including interest rate cuts to support a weakening property market. On Thursday, state media said Chinese President Xi Jinping and other top leaders confirmed the measures.
“While we're not sure there's enough money to actually get the economy back up and running, this is certainly the right first step,” said Art Hogan, chief market strategist at B. Riley Securities. “I think the impact of China's rise cannot be underestimated. “
“Overall, this is a vague positive for the market going forward,” he added. “I think a lot of investors are going to have to readjust their expectations very quickly.”
After this move, more American investors are optimistic about the market. Last week, billionaire hedge fund founder David Tepper said he was extremely bullish on China's stock market, buying “everything” related to China after the Federal Reserve's recent interest rate cut.
—CNBC’s Gina Francolla, Nick Wells, Lim Hui Jie and Evelyn Cheng contributed to this report.