China's stimulus rally has already sent stocks up 25%. And there could be more to come

Oct. 4, 2024 - CNBC

SHANGHAI, CHINA - MARCH 7, 2023 - The Oriental Pearl Tower, Shanghai Tower, Jinmao Tower and World Financial Center are seen on Lujiazui Street, Shanghai, China, March 7, 2023. Beijing's announcements of economic support last week have fueled China's CSI 300 blue-chip index to rally over 25% in a nine-day winning streak.

Then, Hong Kong stocks dropped on Thursday, ending a 6-day winning streak and sparking fears that China's stimulus rally could have started to fizzle out. Beijing's recent stimulus blitz coupled with higher participation from retail investors will likely fuel a longer rally, he said.

The rally in equity could be derailed if the central government's fiscal stimulus package misses expectations, according to Macquarie Capital's Hsiao...