Having thrown everything bar the kitchen sink to prop up the nation’s faltering stock market, Chinese policymakers have finally had their way, with stocks rallying today.
With wide-ranging new rules aimed at curbing selling and much of the market in a trading halt, the benchmark Shanghai Composite index put on 5.79%, its largest one-day percentage increase since March 4, 2009. Buying large-cap stocks appears to have propelled the broader market higher with the Shanghai stock exchange 50 index jumping 6.63%.
Elsewhere the CSI 300, which comprises the 300 largest firms on the Shanghai and Shenzhen exchanges, rose 6.40%, while small-cap indices such as the CSI 500, Shenzhen Composite and the tech-heavy ChiNext added more than 3%.
Reflective of the positivity in mainland Chinese markets, along with significant short-covering, Hong Kong’s Hang Seng, after plunging nearly 6% on Wednesday, is up by 3.71% shortly before the close.
The positivity from Chinese markets was reflected across the region, with the Nikkei in Japan and the Kospi in South Korea advancing 0.6% and 0.58% respectively. The ASX 200 in Australia, having been down more than 1% earlier in the session, finished flat.