The Shanghai Composite index climbed 162.90 points, or 4.88%, to close at 3,499.40 at 8:55 AM IST on October 8, 2024, marking a strong opening after a 7-day holiday break. This significant upward movement comes on the back of a stimulus package unveiled by the Chinese government in late September, aimed at reviving the economy, particularly in the housing and financial sectors.
China’s recent stimulus package includes interest rate cuts, increased liquidity for banks, and incentives for home buyers, which has reignited optimism in the markets. The response has been swift, with the CSI 300 index seeing its biggest daily gain in 16 years, jumping over 8%. The ripple effect was also felt in U.S.-listed Chinese stocks, as the Golden Dragon index surged 9.1% in late September.
Investors are optimistic about the long-term impact of these measures as China continues to implement economic reforms to support key sectors.
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