(Reuters) – China’s stock markets have been on a tear since Beijing rolled out flurry of stimulus measures last week and over the weekend to jolt the beaten-down market and revive a slowing economy.
On Monday, the CSI300 blue-chip index surged 8% to its highest level in over a year after clocking its best weekly performance in nearly 16 years last week.
Here are some comments from market analysts and investors:
DICKIE WONG, EXECUTIVE DIRECTOR OF RESEARCH AT KINGSTON SECURITIES, HONG KONG
“It’s really a big turnaround, the policies are so intensive, we have never seen such clear instruction to stop housing prices declining and support the stock market.
“Many foreign investors are afraid of missing out, local retail investors are asking me what they should add to, institutional investors are rushing to the market to catch up, and the large inflows have pushed the Hang Seng Index up to 21,000.”
MICHAEL MCCARTHY, CHIEF COMMERCIAL OFFICER AND STRATEGIST, MOOMOO AUSTRALIA
“We offer trading in Hong Kong shares and these sorts of measures have turned attention towards Hong Kong listings and there’s definitely been a pickup in trading happening with us. I wouldn’t say the whole world has turned that way but we’ve certainly seen a pickup in trading to China-exposed shares. Of course, you can trade them on the Australian bourse as well – Fortescue has been one of the top performers here, as a pure iron-ore play.”
KENNY NG, STRATEGIST, CHINA EVERBRIGHT SECURITIES INTERNATIONAL, HONG KONG
“The market is still surprised by China’s policy support and momentum is still continuing.”
Ng said he has been deluged with calls from clients asking for stock and strategy tips and his latest Hang Seng target price, with more calls in the last few days than in half of the previous month.
WANG QING, CHAIRMAN, SHANGHAI CHONGYANG INVESTMENT MANAGEMENT, SHANGHAI
“FOMO (fear of missing out) among investors is prevalent. We maintained a high gross risk exposure before the slew of policy announcements and have since enjoyed the ride. We will likely deploy the cash available if there were to be a technical correction in the near term. Property sector and fiscal policies are key to watch.”
WEI LI, MULTI-ASSET QUANT SOLUTIONS PORTFOLIO, BNP PARIBAS ASSET MANAGEMENT, HONG KONG
“The larger-than-expected stimulus from the People’s Bank of China and the clear signals from the Politburo meeting suggest a shift toward more forceful and coordinated macroeconomic easing. The announcement from the Politburo, however, marks a more decisive shift, indicating that fiscal stimulus will follow, alongside explicit pledges to stabilise property markets and directly support the stock market. This is likely to boost market confidence and trigger further rallies in China’s equity market.”
VASU MENON, MANAGING DIRECTOR, INVESTMENT STRATEGY, OCBC, SINGAPORE
“The Chinese stocks have seen a spectacular rebound, but investors should not get carried away and assume that it will go up in a straight line. China’s market can be extremely volatile and a similar sharp rebound in April and May of this year, gave way to profit taking subsequently after economic data missed forecasts, raising concerns that China’s growth target was at risk. So, a lot hinges now on whether the latest stimulus will indeed help the economy and whether China will follow through with aggressive fiscal stimulus as well.”
(Reporting by Asia markets team; Editing by Christopher Cushing)
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