China market’s best day has 3.5 trillion yuan of stocks traded, as Hong Kong takes a break
The CSI 300 Index pared gains after registering a record intraday jump while the Hang Seng Index slumped the most since 2008
The CSI 300 Index, which tracks the biggest companies in Shanghai and Shenzhen, closed 5.9 per cent higher, after surging 10.8 per cent earlier during the day in its biggest intraday percentage gain.
A record 3.5 trillion yuan (US$500 billion) of equities changed hands on the mainland, surpassing the September 30 high.
Hong Kong’s market tumbled, as a record HK$620 billion (US$80 billion) worth of shares changed hands. The key Hang Seng Index plunged 9.4 per cent in its worst day since 2008, wiping out all the gains it had notched up while the mainland markets were on holiday.
“Without a massive and direct boost to spending, the optimism could fade fast, leaving investors wary of chasing this rally higher”, said Stephen Innes, managing director at SPI Asset Management.