‘Claman Countdown’ panelists Steve Laipply and John Petrides examine economic data and the global economy.
Chinese shares hit their biggest one-day gain since 2008 on Monday, and domestic stocks registered their highest ever gains as investors scrambled to join a fiery rally sparked by Beijing’s latest stimulus measures.
The move includes exchange-traded funds tied to China. The KraneShares CSI China Internet ETF rose, posting its best three-day chart since the three days ending March 18, 2022, when it rose 39.31%, as tracked by the Dow Jones Market Data group.
| A ticker | Security | Finally | Change | change % |
|---|---|---|---|---|
| KWEB | KRANESHARES TR CSI CHINA INTERNET ETF | 34.02 | +0.09 |
+0.27% |
| PGJ | POWERSHARES GOLDEN DRAGON HALTER USX CHINA PORTFOLIO | 28.19 | +0.17 |
+0.61% |
Meanwhile, the Invesco Golden Dragon China ETF had its best three-day performance since the three days ending March 18, 2022, when it rose 36.85%.
The sharp rally in Chinese stocks came after stimulus measures announced last week by Beijing since the pandemic, from curbing foreign exchange rates to fiscal support, in an effort to shore up its ailing economy.
A CHINESE TECHNOLOGIST SOUNDS THE ALARM
“China has clearly hit the panic button from an economic, monetary policy and stimulus perspective, and you’re seeing big rallies in anything related to China. We saw a rally in Japanese stocks earlier this year and European stocks, but there’s a lot of room for action on the international side,” said John Petrides. , portfolio manager at Tocqueville Asset Management, during an appearance on “The Claman Countdown.”
China is lowering interest rates while easing housing regulations. The People’s Bank of China also lowered limits on banks’ capital requirements.
US COMPANIES WITH ESTATE IN CHINA EXPOSED TO HUGE RISK
An investor looks at the stock market at a securities trading hall in Fuyang, China, on Dec. 5, 2023. (Costfoto/NurPhoto via Getty Images)
Many traders, fearing they might miss out on a rally ahead of the weeklong holiday that starts on Tuesday, helped lift the CSI300 index 8.5% in the end, taking its five-day gain to more than 25%, the strongest on record.
The broader Shanghai Composite Index recorded a total gain of 1.17 trillion yuan, or $166.84 billion, and rose 8.1%.
The blue-chip CSI300 index is now up nearly 30% from its February trough, which by some market definitions suggests it’s in a bull market, but most of the gains have happened very quickly and in a few moments since last week.
| A ticker | Security | Finally | Change | Change % |
|---|---|---|---|---|
| JD | Company JD.COM INC. | 40.00 | +0.10 |
+0.25% |
| FATHER | ALIBABA GROUP HOLDING LTD. | 106.12 | -1.21 |
-1.13% |
| TWO | BILIBILI INC. | 23.38 | +0.46 |
+2.01% |
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Chinese shares or ADRs traded in the US, including JD.com, Alibaba and Bilibili, also rose.
Reuters contributed to this report.