The country’s total market capitalisation is now US$10.04 trillion and just shy of the all-time high, according to data compiled by Bloomberg as of Oct. 12. The US has the world’s most valuable stock market at US$38.3 trillion.
Chinese shares have rallied since a long holiday break on optimism the government will introduce reforms to turn the region around Shenzhen into a global technology hub and that the ruling Communist Party will introduce policies to stimulate demand when it holds a major meeting later this month. Equities surged over the summer as margin debt climbed at the fastest pace since 2015 and turnover soared.
A stronger yuan has also helped stocks. China’s currency rose 3.9% last quarter, the most in 12 years. That advance has prompted the central bank to restrain the yuan’s rally while stopping short of encouraging declines.
China has added a new stock venue since 2015, with the Nasdaq-style Star market launching in Shanghai in July last year. Regulators waived rules on valuations and debut-day price limits for shares on the board.
