Shanghai Stocks Jump Over 5% on Positive Economic Data, Traders Cheer China’s Stimulus Moves

Shares in Hong Kong and mainland China surged after markets opened on Monday, following the release of important economic data from China.

Although China’s manufacturing activity dropped in September, with both local and international orders slowing down, traders were optimistic. The Caixin/S&P Global Manufacturing PMI fell to 49.3 in September, down from 50.4 in August, which was below analysts’ expectations of 50.5. This was the lowest figure since July last year.

Despite the disappointing manufacturing numbers, investors reacted positively to the Chinese government’s efforts to revive the struggling economy, especially in the property market.

The Hang Seng Index in Hong Kong rose by 3.14%, or 647.68 points, to 21,279.98. Meanwhile, the Shanghai Composite Index soared by 5.54%, or 171.17 points, to 3,258.70, and the Shenzhen Composite Index climbed by 5.18%, or 89.99 points, to 1,827.55.

These gains followed last week’s rise, which was fueled by China’s leadership introducing several stimulus measures aimed at reversing the economic slowdown. On Monday, three major cities in China eased restrictions on home purchases, and the central bank urged financial institutions to lower mortgage rates to address the ongoing housing crisis.

As a result, developers saw huge gains: Kaisa’s stock skyrocketed by nearly 60%, Sunac rose by over 16%, and Fantasia jumped by more than 30%.