SHANGHAI: China stocks logged their best week in 16 years on Friday, as Beijing rolled out its most aggressive stimulus package since the pandemic this week ahead of the Golden Week holidays.
The blue-chip CSI300 and benchmark Shanghai Composite indexes have gained roughly 16% and 13%, respectively, for the week, their biggest jump since 2008. Hong Kong’s Hang Seng index has added 13%.
“At face value, all measures announced this week signal that the urgency of policy response is not lost on authorities – an important shift in a market that was looking for more than just the bare minimum,” Barclays analysts said.
“But in a scenario that would have more far?-?reaching effects on global assets, perhaps this week signals that China is looking to repair its national balance sheet structurally.” China’s central bank said on Friday it would cut the reserve requirement ratio for all banks by 50 basis points and lower the borrowing cost of its seven-day reverse repurchase agreements by 20 bps, part of efforts flagged on Tuesday aiming to get the ailing economy back on more solid footing.
Meanwhile, data showed industrial profits swung back to a sharp contraction in August.
For the day, CSI300 and SSEC rose 4.5% and 2.9%, respectively.
China’s property shares extended gains, jumping more than 8% on a pledge from the September Politburo meeting to stabilise the housing market.
Reuters reported top Chinese cities Shanghai and Shenzhen are planning to lift key remaining restrictions on home purchases to attract potential buyers and shore up their flagging real estate markets.
Consumer staple shares jumped 7.5%, with liquor giant Moutai rising 6.6%.
Hong Kong’s HSI was up 3.6%, led by technology shares , surging 5.8%.
JD.com and Meituan shares climbed more than 8%, each.
As the market was rallying, some investors struggled to complete their orders on the Shanghai Stock Exchange due to technical glitches, according to market participants and a statement from the exchange.
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