A shareholder at a stock exchange hall in Hangzhou, the capital of east China's Zhejiang province, on September 24, 2024.
kvoto | Future Publishing | Getty Images
Chinese stocks rose on Monday to their best day in 16 years, with related US ETFs also rising after recent economic stimulus boosted investor optimism in the market.
the Shanghai Composite Index It rose 8.06% on its best day since September 2008, capping a nine-day winning streak for the index. It ended September up 17.39%, its first monthly gain in five months and its best monthly performance dating back to April 2015.
the Shenzhen Composite Index It closed up 10.9%, its best day since April 1996. It rose 24.8% in September, its best month since April 2007.
the Chinese ADR Index It closed up 1.2% and was up nearly 6% earlier in the day.
US listed shares of the online video company Bilibili And the brokerage company Foto Holdings It rose a little.
ADR index for China
the KraneShares CSI China Internet ETF (KWEB) It rose by 0.6%.
Chinese stocks witnessed a state of tear after Beijing last week unveiled a series of economic stimulus measures, including interest rate cuts, to support the weak real estate market. Chinese President Xi Jinping and other senior leaders confirmed the measures, state media said on Thursday.
“Although we don't know for sure if there will be enough to get the economy back on track, it's certainly the right first step,” said Art Hogan, chief market strategist at B. Riley Wealth. “I think the impact of China's strengthening cannot be underestimated.”
“In general, this will be a vague positive thing for the markets in the future,” he added. “And I think a lot of investors are going to have to readjust their expectations quickly.”
More US investors are optimistic about the market after this move. Last week, billionaire hedge fund founder David Tepper said he was hugely bullish on Chinese stocks, having bought “everything” related to China following the Federal Reserve's latest interest rate cut.
— CNBC's Gina Francola, 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 miscalculated his company.
