China’s stock market is surging as both local and foreign investors jump in

Chinese stocks are blowing up, and the buying isn’t ￰0￱ foreign funds and local investors are throwing cash into the ￰1￱ Shanghai Composite just hit its highest point in ten years, and the Hang Seng Index in Hong Kong has already climbed 30% in ￰2￱ makes it the best run since ￰3￱ it’s not just coming from funds, it’s coming from everyday people who’ve had enough of low bank returns and a dead property ￰4￱ whole thing is turning ￰5￱ to CNN, the buying frenzy took off on September 24, 2024, the date now known in China’s financial scene as the “9.24 performance.” That’s when Pan Gongsheng, the central bank governor, and other senior finance officials held a rare joint press ￰6￱ made it clear they were stepping ￰7￱ drives rally with new policy and media play A few days ago, another media briefing was held by top financial ￰8￱ said China’s capital markets were gaining new friends globally, pointing to rising foreign ￰9￱ Wood’s Ark Investment Management confirmed it reopened a position in Alibaba, the first time in four ￰10￱ was listed in their daily trading ￰11￱ government also isn’t just watching from the sidelines.

They’re pushing big institutions to get ￰12￱ regulators have told insurers and state-backed mutual funds to start buying more ￰13￱ are institutions that normally sit things ￰14￱ this ￰15￱ aim is to turn China’s stock market into something closer to what the U. S. has, a place where people grow their wealth, not just take chances. Still, retail buyers are doing most of the ￰16￱ they’re doing it ￰17￱ Yujie, who runs a hanfu rental business near the Forbidden City, is one of ￰18￱ recently moved 10% of her money into stocks and made a full month’s salary in a matter of days.

“Interest rates for bank deposits are so low I don’t even want to bother,” she said. “Stocks are a hot topic right now.” Investors pile in as other options dry up There aren’t many other ￰19￱ estate in China is still ￰20￱ outside the country is locked up with tight ￰21￱ leaves ￰22￱ people are noticing the country’s progress in things like AI and ￰23￱ said, “AI and drones have been developing fast in China. I hear there is great potential for those stocks.” Policy experts see real intent from the ￰24￱ Hong, chief investment officer at Lotus Asset Management, said: “There is a change of policy intention because the deflationary pressure is getting more and more ￰25￱ policymakers felt that they need to do something to refocus the government work on economic growth rather than minimize risk.” But even with the buying spree, old scars haven’t ￰26￱ remember the crash ten years ago that wiped out ￰27￱ memory still haunts retail ￰28￱ it’s a big reason why some still treat the market like a ￰29￱ said , “Many of the retail investors still believe that it’s a gamble.

It’s a ￰30￱ one believes that it’s a long-term investment. It’s very different from the U. S.” HSBC says retail buyers make up 90% of China’s daily trading ￰31￱ the United States, it’s just 20%. That means the swings in China are bigger, louder, and way more ￰32￱ also means the rally is ￰33￱ enough people get spooked, everything could reverse.

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