(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 CSI300 blue-chip index soared 8% to its highest level in more than a year, after posting its best weekly performance in about 16 years last week.
Here are comments from market analysts and investors:
Mr. Dickie Wong, Executive Director, Research Department, Kingston Securities Hong Kong
“This is a really big shift, the policy is very focused and I have never seen clearer instructions to stop house prices falling 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 numbers of The number has risen to 21,000 due to the inflow of funds.
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 for stocks, strategy tips and the latest Hang Seng price targets, 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. ”
Wei Li, Multi-Asset Quantitative Solutions Portfolio, BNP Paribas Asset Management, Hong Kong
“The larger-than-expected stimulus package from the People’s Bank of China and clear signals from the Politburo meeting suggest a shift toward stronger and more coordinated macroeconomic easing. It marks a decisive shift and shows that fiscal consolidation is here to stay.” Stimulus measures will continue, with clear commitments to stabilize the real estate market and direct support for the stock market. This is likely to boost market confidence and trigger further gains in the Chinese stock 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.”
