China’s benchmark stock index posts biggest daily gain since 2008 By Reuters

(Article from September 30th amended on October 14th to correct title and location of BNP’s Wei Li)

(Reuters) – China’s stock market has been in free fall since the Chinese government rolled out a flurry of stimulus measures last week and over the weekend to shake up battered markets and revive a slowing economy.

On Monday, the blue-chip CSI 300 index rose 8.48% to close at its highest in more than a year, after posting its best weekly performance in nearly 16 years last week.

Here are comments from market analysts and investors:

Mr. Dickie Wong, Executive Director, Research, Kingston Securities (Hong Kong)

“This is a really big shift. Policy has been very focused and I’ve never seen clearer instructions to stop the decline in house prices and support the stock market.”

“Many foreign investors are afraid of missing out, local retail investors are asking me what to add, institutional investors are flooding the market to catch up, and large amounts of The number has risen to 21,000 due to the inflow of funds.

CHI LO, Senior Market Strategist, Asia Pacific, BNP Paribas Asset Management, Hong Kong

“If you look across government, all senior government officials are now involved in making sure that something is being done within the system in terms of mitigation. It’s not that surprising to see such a response.”

“The big question on everyone’s mind is: Is this a tipping point? That’s what I wanted to know. But one thing I can say is this is by no means the point of exiting the Chinese market. That’s it.”

“I don’t think we’re sure right now about when we’re going to come in and how much we’re going to get there. We need specific indicators of market confidence and government confidence.”

Michael McCarthy, Chief Commercial Officer and Strategist, MOOMOO Australia

“We offer trading in Hong Kong stocks, and these kinds of measures have brought attention to Hong Kong listings and have definitely increased our trading. I’m not saying the whole world has changed in that direction, but we We’ve certainly seen that.” Of course, Australian stock exchanges are also seeing increased trading in Chinese public stocks. Fortescue is the top performer here as a pure iron ore supplier. ”

KENNY NG, Strategist, China Everbright Securities International, Hong Kong

“The market is still surprised by China’s policy support and the momentum is still there.”

Ng said the company has been flooded with calls from customers asking about stocks, strategy tips and the latest Hang Seng price target, with the number of calls in recent days being more than half the number in the previous month.

Mr. Wang Qing, Chairman of Shanghai Chongyang Investment Management

“FOMO (fear of missing out) is rampant among investors. We have maintained a high total risk exposure even before the series of policy announcements and have enjoyed the ride since then. Once there are technical adjustments, we will deploy available funds.” In the short term, the real estate sector and fiscal policy will be in focus. ”

Alice Shen, Portfolio Manager, Vanek, Sydney

“For the past six months, no one talked about China at all, and we avoided China at all costs. But now our customers are demanding it.”

Wei Li, Head of China, BNP Paribas, Shanghai Multi-Asset Investment

“The better-than-expected stimulus package from the People’s Bank of China and clear signals from the Politburo meeting suggest a shift to stronger and more coordinated macroeconomic easing.”

“However, the Politburo’s announcement signals a more decisive shift, with clear commitments to stabilize the real estate market and direct support for the stock market, as well as a continuation of fiscal stimulus. “This will likely boost confidence and trigger further gains in Chinese stocks” market. “

Vasu Menon, Managing Director, Investment Strategy, OCBC, Singapore

“While Chinese stocks have had an impressive rebound, investors should not get carried away and think stocks will rise in a straight line.The Chinese market can be very volatile, and as we saw in April and May this year, There was a sharp rebound, but that momentum has disappeared.” Profit-taking then began as economic data fell short of expectations, raising concerns that China’s growth goals were in jeopardy. “So a lot depends on whether this stimulus actually helps the economy, and whether China also implements aggressive fiscal stimulus.”