The Chinese stock markets are on the rise, following a series of stimulus measures announced by the country’s government last week, which aim to turn around predictions of an economic slowdown.
On Monday, the CSI300 blue-chip index rose 8%, driven by growth in healthcare and technology stocks. The index closed at 4,017.85. This marks the CSI’s best day since September 2008 and the highest level since August 2023.
The combined turnover on the Shanghai and Shenzhen bourses on Monday exceeded 1.8 trillion yuan ($228 billion), according to the Securities Times.
China’s official purchasing managers’ index reading for September came in at 49.8, while S&P Global’s Caixin PMI survey reported that the manufacturing PMI fell to 49.3 from 50.4. The data also marked the fifth straight month of contraction for the manufacturing sector in China and the fastest decline of the industry in 14 months.
After months of concerning economic data, Chinese leader Xi Jinping approved last week a celebrated stimulus package. The measures implemented by the country’s central bank included freeing commercial banks to lend more money and reducing the cost of borrowing for households and businesses.
China’s markets will close for the remainder of the week, as the nation celebrates the Golden Week holiday.
