Chinese Stocks Soar to 16-Year Highs Amid Sweeping Stimulus Measures

Chinese stock markets experienced their highest single-day gains in 16 years, driven by Beijing's aggressive stimulus measures. The CSI300 and Shanghai Composite Indexes saw unprecedented increases, with investor optimism fueled by new capital market tools and property market support policies. The Hang Seng Index also surged, making it the region's top performer.

Chinese stocks experienced their largest single-day gains in 16 years on Monday, as domestic A-shares hit record turnover. This sweeping rally was sparked by Beijing's latest aggressive stimulus measures.

The CSI300 blue-chip index has surged nearly 30% from its February lows, indicating a bull market, with much of the gains concentrated in a few sessions. Anxiety over missing out on gains ahead of a week-long holiday contributed to lifting the CSI300 index by 8.5% at the close, marking a five-day gain of over 25%, the strongest on record.

Meanwhile, the broader Shanghai Composite Index reported a total turnover of 1.17 trillion yuan ($166.84 billion) and surged 8.1%, marking the strongest five-day gains since 1996. Similarly, the smaller Shenzhen index soared 11% with a turnover of 1.4 trillion yuan. The stimulus measures, which include outsized rate cuts and fiscal support, have lit a fire under Chinese equities. The People's Bank of China's new tools, including a swap program, have made it easier for funds, insurers, and brokers to buy stocks, significantly boosting investor confidence.

(With inputs from agencies.)