From CNBC: 2024-10-01 01:05:05

Chinese stocks surged more than 8%, with trading volume hitting a record high of $368.78 billion. Analysts note differences from the 2015 market bubble, citing lower leverage this time around. Policy announcements and rebounds suggest a stronger market rally, though economic headwinds remain a concern for the future.

The latest market gains follow strong economic support and policy signals to encourage investment. Chinese President Xi Jinping led a meeting emphasizing the need to halt real estate decline and strengthen fiscal and monetary policies. Despite weekly gains, there are lingering doubts about a sustained market recovery.

Economic data show slower growth in China, raising concerns about reaching full-year GDP targets without additional stimulus. Continued recovery hinges on earnings growth and stable forecasts. While stock market rallies could last for months, there are risks from an ill-prepared trading system and new retail investors entering the market.

Read more: China’s stock surge has echoes of the 2015 bubble. What’s different