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China’s stock markets set record as daily turnover exceeds 1 trillion yuan for 44th day

  • Previous record of 43 days set in 2015 helped to more than double the benchmark stock index
  • Average daily turnover above 1 trillion yuan may become new norm: CICC analysts

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The Lujiazui financial district in Shanghai. The Shanghai Composite Index closed 0.4 per cent higher on Wednesday after trading reopened following a two-day holiday. Photo: EPA-EFE
Zhang Shidongin Shanghai
China’s stock markets ushered in a milestone after shares worth more than 1 trillion yuan (US$154.6 billion) changed hands on the Shanghai and Shenzhen exchanges for the 44th consecutive day on Wednesday.

The previous record of 43 days, set between May and July in 2015, helped to more than double the benchmark stock index.

“We expect A shares to continue outperforming MSCI China, given their low internet weight, high weight in the policy supported manufacturing sector and better domestic liquidity conditions,” said Meng Lei, a strategist at UBS Group in Shanghai.

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While trading of offshore stocks has been roiled by the debt crisis at China Evergrande Group and Beijing’s regulatory crackdown on sectors ranging from technology and after-school tutoring to Macau’s casinos over the past several months, China’s onshore markets – denominated in the yuan and also known as the A-shares market – have remained relatively calm and continued to attract inflows.
The Shanghai Composite Index closed 0.4 per cent higher on Wednesday after trading reopened following a two-day holiday. Evergrande’s debt woes, which sank Hong Kong’s Hang Seng Index by almost 3 per cent over the past two days, barely spooked local investors after the People’s Bank of China pumped funds into the financial system to soothe sentiment.
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The combined trading values of the Shanghai and Shenzhen bourses totalled 1.1 trillion yuan on Wednesday. September 1 was the busiest trading day this year, with the turnover hitting 1.66 trillion yuan. In comparison, trading activities have remained subdued in Hong Kong, with the highest daily trading value being only HK$361 billion (US$46 billion) in 2021.

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