Chinese stocks leapt to their largest one-day gain in two years on Tuesday and the yuan rose on a slew of signals that authorities are strengthening their resolve to support slumping markets. The Shanghai Composite jumped 3.2 per cent, in its biggest daily gain since March 2022. The trade volume was the highest since May last year.
The blue-chip CSI 300, climbed 3.5 per cent for its largest one-day rise since November 2022, and the small cap index (CSI1000I) notched its biggest rise since 2008. The rise in stocks comes after country’s main indexes sank to five-year lows in recent sessions on gloom about the sputtering economy and a lack of forceful policy stimulus measures like those rolled out during past crises.
‘’China’s stocks have been on a rollercoaster ride lately. I feel like the China indices have had a rough time recently, hitting five-year lows. The CSI300 Index dropped nearly five per cent last week, with signs of panic selling and forced liquidation of leveraged trades,” said Trivesh D, COO at Tradejini.
‘’It’s worth noting that China’s GDP growth data for the fourth quarter was a bit disappointing. The growth momentum was flat despite an increase in government bond issuance and infrastructure investment,” added the analyst.
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Published: 06 Feb 2024, 05:04 PM IST