A record 99.75% of major Mainland Chinese stocks are in on the rally
A historic share of Chinese stocks gained on Monday — right before markets close for Golden Week.
How intense is the rally in Chinese equities, propelled higher by pledges of government stimulus and direct measures to support the stock market? Well, it’s so strong that basically nothing is going down.
Both key Mainland China indexes had fantastic sessions to start the week, with Shanghai’s gauge up more than 8% in its best day since 2008 and Shenzhen’s surging nearly 11%, its biggest one-day gain since 1996. And yet, that may undersell how special the session was.
Over 5000 stocks went up and only 6 retreated on Monday. Across both exchanges, the 99.75% of stocks rising in one session is the highest share on record, based on data going back to July 2001.
On the Shanghai Composite, literally nothing went down:
There are 2230 stocks in the Shanghai Composite. Not a single one fell today. The four worst stocks in the index were flat pic.twitter.com/KQ8gOKQxBM
— Joe Weisenthal (@TheStalwart) September 30, 2024
For reference, even on the S&P 500’s best for breadth in recent memory — the near 5% face-ripper on December 26, 2018 that defined the equity market’s Q4 bottom on Christmas Eve — one constituent in the benchmark stock gauge still fell. And that’s just 500 stocks (with some dual-class listing funkiness); Shanghai has more than four times that.
Over in Shenzhen, the six companies that fell were:
Jiangsu Zhongli Group (-5.1%), a manufacturer of cables and wires
Hunan Jingfeng Pharmaceutical Co (-5%)
Xinjiang Haoyuan Gas Company (-3.1%)
Nanjing Red Sun Co. (-2.4%), an agricultural chemical company
Zhejiang Reclaim Construction Group (-0.6%), an infrastructure firm
Chongqing Sansheng Industrial Co (-0.4%), which makes building materials
Unfortunately for Chinese traders, this hot streak will have to go on hiatus no matter what: the Shanghai and Shenzhen exchanges are now closed until October 8 for Golden Week.
