China’s Benchmark Stock Index Poised for Largest Daily Gain Since 2008, According to Reuters

China’s stock markets have experienced a significant rally following a series of stimulus measures announced by Beijing last week and over the weekend, aimed at revitalizing the struggling economy.

On Monday, the CSI300 blue-chip index soared by 8%, reaching its highest level in over a year after posting its best weekly performance in nearly 16 years.

Here are some insights from market analysts and investors:

Dickie Wong, Executive Director of Research at Kingston Securities, Hong Kong:
"This is a substantial turnaround. The policies are quite intensive; we haven’t seen such clear directives to halt the decline in housing prices and support the stock market. Many foreign investors are concerned about missing out, while local retail investors are inquiring about investment opportunities. Institutional investors are also flocking to the market, driving significant inflows and pushing prices to 21,000."

Michael McCarthy, Chief Commercial Officer and Strategist, Moomoo Australia:
"We facilitate trading in Hong Kong shares, and the recent measures have shifted focus toward listings in Hong Kong. We’ve observed increased trading activity, particularly in stocks related to China. Although it may not indicate a complete global shift, we have certainly seen a rise in trading related to China-exposed shares."

Kenny Ng, Strategist, China Everbright Securities International, Hong Kong:
"The market remains surprised by the policy support from China, and the momentum continues. I’ve received an influx of calls from clients seeking stock recommendations and strategies, with more inquiries in recent days than in the previous month combined."

Wang Qing, Chairman, Shanghai Chongyang Investment Management, Shanghai:
"There is a prevailing sense of fear of missing out (FOMO) among investors. We maintained a high risk exposure before the policy announcements and have benefitted from the subsequent market rise. We may invest our available cash if there is a technical correction soon. The property sector and fiscal policies will be crucial to monitor."

Wei Li, Multi-Asset Quant Solutions Portfolio, BNP Paribas Asset Management, Hong Kong:
"The unexpectedly large stimulus from the People’s Bank of China and the clear intentions from the Politburo meeting indicate a shift towards more aggressive and coordinated macroeconomic easing. The Politburo’s announcement suggests a decisive turn, with a promise of fiscal stimulus to support the stabilization of property markets and the stock market. This is likely to enhance market confidence and lead to further rallies in China’s equity market."

Vasu Menon, Managing Director, Investment Strategy, OCBC, Singapore:
"Chinese stocks have undergone a remarkable rebound, but investors should be cautious and not assume that the market will climb steadily. China’s market can be highly volatile, as evidenced by a sharp recovery in April and May, which was followed by profit-taking after economic data fell short of expectations. The effectiveness of the latest stimulus in aiding the economy and the government’s commitment to comprehensive fiscal support are now crucial factors."