Chinese stocks had their best day in 16 years, sending related U.S. ETFs soaring.
Shareholder of Hangzhou Securities Hall, capital of eastern China’s Zhejiang Province, on September 24, 2024.
C photo | Future Publishing | getty images
Chinese stocks rebounded on Monday to post their best day in 16 years, while related U.S. ETFs also rose after recent stimulus measures boosted investor optimism in the market.
that Shanghai Composite Index It surged 8.06% on its best day since September 2008 and marked the index’s ninth straight winning day. September rose 17.39%, marking the first monthly increase in five months and the best monthly performance since April 2015.
that Shenzhen Composite Index It rose 10.9%, reaching the highest level since April 1996. It rose 24.8% in September, reaching the highest level since April 2007.
that China ADR Index It closed 1.2%. It rose about 6% this morning.
U.S.-listed stock of online video company Bilibili And a brokerage company Putu Holdings It has risen slightly.
China ADR Index
that KraneShares CSI China Internet ETF (KWEB) It rose 0.6%.
Chinese stocks fell sharply last week after the Chinese government announced a slew of stimulus measures, including interest rate cuts, to support its weak real estate market. State media on Thursday reported that Chinese President Xi Jinping and other top leaders confirmed the move.
“It’s not clear whether there will be enough money to bring the economy back to life, but it’s clear that this is the right first step,” said Art Hogan, chief market strategist at B. Riley Wealth. “I don’t think we can underestimate the impact of China’s strengthening.”
“On balance, this will have a vaguely positive impact on the market going forward,” he added. “And I think a lot of investors are going to have to readjust their expectations quickly.”
After this move, more American investors are showing optimism about the market. Last week, billionaire hedge fund founder David Tepper said he was overwhelmingly bullish on Chinese stocks, buying “everything” related to China following the Federal Reserve’s recent interest rate cut.
— CNBC’s Gina Francolla, Nick Wells, Lim Hui Jie and Evelyn Cheng contributed to this report.
Correction: Art Hogan is chief market strategist at B. Riley Wealth. An earlier version misstated his company.
