A shareholder at a securities hall in Hangzhou, the capital of Zhejiang province in east China, on Sept. 24, 2024.
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China stocks rallied Monday to their best day in 16 years, with related U.S. ETFs also rising after recent economic stimulus buoyed investor optimism out there.
The Shanghai Composite Index surged 8.06% in its best day since September 2008, and capping a nine-day win streak for the index. It ended September up 17.39%, its first monthly gain in five and its best monthly performance going back to April 2015.
The Shenzhen Composite Index closed up 10.9%, its best day since April 1996. It gained 24.8% in September, its best month going back to April 2007.
The China ADR index closed up 1.2%. It climbed nearly 6% earlier within the day.
The U.S.-listed shares of online video company Bilibili and brokerage company Futu Holdings rose barely.
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China ADR Index
The KraneShares CSI China Web ETF (KWEB) gained 0.6%.
Chinese stocks have been on a tear after Beijing last week unveiled a slew of economic stimulus measures including rate of interest cuts to support the weak property market. On Thursday, state media said Chinese President Xi Jinping and other top leaders affirmed the measures.
“While we do not know needless to say if there’s going to be enough to essentially kick the economy back into gear, it’s definitely the appropriate first step,” said Art Hogan, chief market strategist at B. Riley Wealth. “I believe the impact of a strengthening China cannot be underestimated.”
“On balance, that is going to be an ambiguous positive for markets going forward,” he added. “And I believe that there is numerous investors are going to need to quickly recalibrate their expectations.”
More U.S. investors are bullish in the marketplace following the move. Last week, billionaire hedge fund founder David Tepper said he’s overwhelmingly bullish on Chinese equities, having bought “every part” related to China following the Federal Reserve’s recent rate cut.
— CNBC’s Gina Francolla, Nick Wells, Lim Hui Jie and Evelyn Cheng contributed to this report.
Correction: Art Hogan is chief market strategist at B. Riley Wealth. A previous version misstated his firm.