China's Stock Market Rallies on $13 Billion Stimulus, SMIC Surges 28%

Oct 7, 2024, 06:43 AM

China's stock market experienced a significant rally following the announcement of an aggressive stimulus package aimed at boosting the economy. The stimulus measures have led to a surge in various sectors, with semiconductor stocks seeing a $13 billion increase. SMIC shares surged by 28%, and the Hang Seng Tech Index rose by over 3%. The Hong Kong Hang Seng Index also rose by 1.6% on Monday, continuing its three-week rally. Brokers and stock exchanges are preparing for a hectic reopening on Tuesday after the week-long national holiday, known as Golden Week. The National Development and Reform Commission (NDRC) is scheduled to hold a press conference on Tuesday to discuss the policies further. Despite the positive market response, there are concerns about the long-term effectiveness of the stimulus in addressing China's structural economic issues.