As the Shanghai index reached over 3,300 and the CSI300 experienced the largest single-day growth in 16 years on 26 September, after the government released a raft of measures to boost the economy, there’s no denying that China stocks are seeing a huge resurgence. The 5 days of bull left many wondering: should I keep the shares or get cash before the market closes for the National Day holiday on 1 October?
In other news, transfers of certificates of deposit (CDs), a type of large time savings with higher interest rates, in this case, 3.15%, have surged since 27 September. Data shows that the amount of funds moving from banks into the stock market had grown to the highest since 2021 in the week between 23 and 27 September. It seems many are trying to free up funds to invest in stocks.
On Weibo, many a Hot Search topic was born in the frenzy. “A-shares” (#A股#, China stocks traded in RMB), “A-shares going from rebound to reversal” (#A股正从反弹走向反转#) and “investor earned 520,000 RMB (74,113.14 USD) in one morning” (#有股民一早赚了52万#) topped the list with an accumulated 35.39 billion, 74.76 million and 130 million views, respectively.
Of course, some are cautious, or even sceptical about the sudden influx of the stocks. Many see that it is too late if the surge has already made the news and entering now might be too risky as the high might not be sustainable. However, with both Hong Kong and China Concept Stock booming, many are taking their chances with “quick in quick out” tactics. It remains to be seen how long the bull market can last and how much the projected confidence in the Chinese market can help boost the “real economy”.
