Advertisement
China stock market
BusinessChina Business

China market’s best day has 3.5 trillion yuan of stocks traded, as Hong Kong takes a break

The CSI 300 Index pared gains after registering a record intraday jump while the Hang Seng Index slumped the most since 2008

Reading Time:2 minutes
Why you can trust SCMP
17
A trader at a brokerage house in Taiyuan in Shanxi province on August 3, 2009. Contrary to global conventions, China represents gains and advances in red, using the green colour to denote losses and declines. Photo: Reuters
Jiaxing LiandEnoch Yiu
The three exchanges of mainland China had their busiest day on record when the stock markets reopened after a weeklong halt, as traders scrambled to catch up with the rally in offshore bourses. Hong Kong lost all the gains made during the break in one day amid profit taking.
Advertisement

The CSI 300 Index, which tracks the biggest companies in Shanghai and Shenzhen, closed 5.9 per cent higher, after surging 10.8 per cent earlier during the day in its biggest intraday percentage gain.

A record 3.5 trillion yuan (US$500 billion) of equities changed hands on the mainland, surpassing the September 30 high.

Hong Kong’s market tumbled, as a record HK$620 billion (US$80 billion) worth of shares changed hands. The key Hang Seng Index plunged 9.4 per cent in its worst day since 2008, wiping out all the gains it had notched up while the mainland markets were on holiday.

The initial euphoria around China’s onshore and offshore stocks waned on Tuesday after a much-heralded press conference by the National Development and Reform Commission (NDRC) failed to deliver the handouts that the market was expecting for augmenting the government’s policy bazooka.
China’s onshore listed stocks soared after the markets reopened following the “golden week” holiday. Photo: EPA-EFE
China’s onshore listed stocks soared after the markets reopened following the “golden week” holiday. Photo: EPA-EFE

“Without a massive and direct boost to spending, the optimism could fade fast, leaving investors wary of chasing this rally higher”, said Stephen Innes, managing director at SPI Asset Management.

Advertisement