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A shareholder at a securities hall in Hangzhou, capital of east China’s Zhejiang province, 24 September 2024.
Cphoto | Future publications | Getty Images
Chinese stocks hit their best day in 16 years on Monday, with related U.S. ETFs also soaring after recent economic stimulus measures boosted investor optimism in the market.
THE Shanghai Composite Index surged 8.06% on its best day since September 2008, capping a nine-day winning streak for the index. It ended the month of September up 17.39%, its first monthly increase in five 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 gained 24.8% in September, its best month dating back to April 2007.
THE China ADR Index was last up 1.4%. It climbed almost 6% at the start of the day.
U.S.-listed shares of a human resources company Kanzhun gained 2% with online video company Bilibili. Online brokerage company Futu Holdings increased by 14%.
China ADR Index
THE KraneShares CSI China Internet ETF (KWEB) gained 1%. U.S.-listed stocks of Alibaba And JD.com was slightly higher.
Chinese stocks are in free fall after Beijing last week unveiled a series of economic stimulus measures, including interest rate cuts to support a weak property market. On Thursday, state media said Chinese President Xi Jinping and other top leaders had confirmed the measures.
“Even though we don’t know for sure if there will be enough to actually restart the economy, it’s certainly the right first step,” said Art Hogan, chief market strategist at B. Riley Wealth. “I think the impact of China strengthening cannot be underestimated.”
“Overall, this is going to be an ambiguous positive for the markets going forward,” he added. “And I think many investors are going to have to quickly recalibrate their expectations.”
More and more American investors are optimistic about the market following this decision. Last week, billionaire hedge fund founder David Tepper declared himself extremely bullish on Chinese stocks, having bought “everything” linked to China following the Federal Reserve’s recent 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. A previous version misstated his company.