China stocks just had their best day in 16 years, sending related U.S. ETFs soaring

2 months ago 7

A shareholder astatine a securities hallway successful Hangzhou, the superior of Zhejiang state successful eastbound China, connected Sept. 24, 2024.

Cfoto | Future Publishing | Getty Images

China stocks rallied Monday to their best time successful 16 years, with related U.S. ETFs besides rising aft caller economical stimulus buoyed capitalist optimism successful the market.

The Shanghai Composite Index surged 8.06% successful its champion time since September 2008, and capping a nine-day triumph streak for the index. It ended September up 17.39%, its archetypal monthly summation successful 5 and its champion monthly show going backmost to April 2015.

The Shenzhen Composite Index closed up 10.9%, its champion time since April 1996. It gained 24.8% successful September, its champion period going backmost to April 2007.

The China ADR index closed up 1.2%. It climbed astir 6% earlier successful the day.

The U.S.-listed shares of online video institution Bilibili and brokerage institution Futu Holdings roseate slightly.

Stock Chart IconStock illustration icon

hide content

China ADR Index

The KraneShares CSI China Internet ETF (KWEB) gained 0.6%.

Chinese stocks person been connected a teardrop aft Beijing past week unveiled a slew of economic stimulus measures including involvement complaint cuts to enactment the anemic spot market. On Thursday, authorities media said Chinese President Xi Jinping and different apical leaders affirmed the measures.

"While we don't cognize for definite if there's going to beryllium capable to truly footwear the system backmost into gear, it's surely the close archetypal step," said Art Hogan, main marketplace strategist astatine B. Riley Wealth. "I deliberation the interaction of a strengthening China can't beryllium underestimated."

"On balance, this is going to beryllium an ambiguous affirmative for markets going forward," helium added. "And I deliberation that there's a batch of investors are going to person to rapidly recalibrate their expectations."

More U.S. investors are bullish connected the marketplace pursuing the move. Last week, billionaire hedge money laminitis David Tepper said helium is overwhelmingly bullish connected Chinese equities, having bought "everything" related to China pursuing the Federal Reserve's caller complaint cut.

— CNBC's Gina Francolla, Nick Wells, Lim Hui Jie and Evelyn Cheng contributed to this report.

Correction: Art Hogan is main marketplace strategist astatine B. Riley Wealth. A erstwhile mentation misstated his firm.

Don’t miss these insights from CNBC PRO

Read Entire Article