- China's stock markets surged post-National Day break, driven by pent-up investor demand.
- Beijing's aggressive stimulus measures have bolstered market sentiment, despite economic challenges.
China's stock markets surged on Tuesday on pent-up demand from a weeklong trading break.
The mainland's benchmark CSI 300 index opened nearly 11% higher, but pared gains to trade about 7% higher an hour after the opening bell.
Benchmark indices on the Shanghai and Shenzhen markets were also sharply higher.
Sentiment in China's stock markets — which entered 2024 in meltdown mode — has been massively bolstered by Beijing's September 24 announcement of aggressive stimulus to support its flagging economy. The CSI 300 is about 25% year-to-date.
China, the world's second-largest economy, is dealing with multiple challenges, including a property crisis, deflation, and high youth unemployment.
Even before Tuesday's opening, China's social media was abuzz with what the stock markets may hold following the weeklong public holiday break.
On Tuesday, hashtags about mainland China's stock market rushed to the top of Weibo's trending list.
Investors are now focused on announcements out of an ongoing press briefing by China's top economic planner, the National Development and Reform Commission, for further cues.
"Another 'bazooka-like' series of measures to potentially support consumption or investment could further amplify optimism that the worst could be over for the Chinese economy, and that authorities are adamant on hitting their 5% growth target for the year," wrote Yeap Jun Rong, a market strategist at trading platform IG, in a Tuesday note.
"Of course, with hopes now high for authorities to deliver, the risks of disappointment are high as well, and any unwinding of gains could quickly escalate," Yeap wrote.
This is a developing story. Please check back for updates.