Claman Countdown panelists Steve Raipli and John Petrides evaluate economic data and the global economy.
Chinese stocks posted their biggest one-day gain since 2008 on Monday, with domestic A-shares climbing as investors scrambled to take part in the wild rally sparked by the Chinese government's latest round of stimulus measures. recorded the highest trading volume ever.
The move is hurting exchange-traded funds with ties to China. CraneShares CSI China Internet ETF rises, posting its best three-day gain since rising 39.31% in the three-day period ended March 18, 2022, as tracked by Dow Jones Market Data Group did.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| KWEB | CraneShares 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 posted its best three-day gain since the three-day period ended March 18, 2022, when it rose 36.85%.
The ferocious rally in Chinese stocks comes on the back of the most aggressive economic stimulus package announced by the Chinese government last week since the pandemic, from massive interest rate cuts to fiscal support to revive the struggling economy.
Chinese experts sound the alarm
“China has clearly hit the panic button from an economic, monetary policy, and stimulus perspective, and we're seeing a massive rally in everything China-related. We've seen Japanese stocks rally at the start of the year, European stocks as well. But there's a lot of scope for him to play internationally,” said John Petrides, portfolio manager at Tocqueville Asset Management, during an appearance on “Cramant Countdown.”
China eased regulations on home purchases and lowered interest rates at the same time. The People's Bank of China also eased restrictions on capital requirements for banks.
U.S. companies with ties to China are at great risk
Investors pay attention to the stock market at a securities business hall in Fuyang, China, on December 5, 2023. (Costfoto/NurPhoto via Getty Images)
Many traders fear they will miss out on gains ahead of the week-long holiday that starts on Tuesday, sending the CSI300 index up 8.5% at the close, its five-day gain of more than 25%, and the most on record. It became the maximum.
The broader Shanghai Composite Index posted total sales of 1.17 trillion yuan ($166.84 billion), up 8.1%.
The CSI300 blue-chip index is currently up nearly 30% from its February lows, suggesting that we are in a bull market by some market definitions, but much of the gain has come from a few trades since last week. It happened quickly.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| J.D. | JDcom Co., Ltd. | 40.00 | +0.10 |
+0.25% |
| Baba | Alibaba Group Holdings Co., Ltd. | 106.12 | -1.21 |
-1.13% |
| Billi | Bilibili Co., Ltd. | 23.38 | +0.46 |
+2.01% |
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Chinese stocks and ADRs traded in the US, including JD.com, Alibaba and Bilibili, also rose.
Reuters contributed to this report.
