What happened?
This week witnessed a remarkable surge in Chinese equities, fueled by recent supportive policy measures. Both onshore and offshore markets experienced a powerful rally. The
Shanghai Composite Index and
Hang Seng Index surged over +12%, marking their most significant weekly jump in ten years.
Source: Google Finance, as of 11:30am, 27 September 2024 (SG Time)
What’s behind the market rally?
The rally’s primary catalyst is the announcement of significant monetary and fiscal policies aimed at bolstering the economy, a development eagerly awaited by investors for months. Two key events unfolded this week:
PBOC Easing Package: On September 24, the People’s Bank of China(PBOC) , the central bank of China, introduced measures to stimulate the economy and bolster the stock markets. These include interest rate cuts, reductions in the Banks’ Reserve Requirement Ratio (RRR), and adjustments to mortgage terms to aid the property market. Additionally, RMB 500...
