On October 8, a reporter from China News Service in Beijing provided an update on the impressive start of the month for Chinese A-shares, noting that all major stock indices experienced significant gains. The Shanghai Composite Index opened sharply higher, soaring over 10% at the beginning of trading. Despite some fluctuations and a decline later in the day, it still managed to close with a strong gain of more than 4%.

By the end of the trading session, the Shanghai Composite Index settled at 3,489 points, reflecting an increase of 4.59%. Similarly, the Shenzhen Component Index reached 11,495 points, up 9.17%, while the ChiNext Index closed at 2,550 points, marking a remarkable rise of 17.25%. Notably, the total trading volume on the Shanghai and Shenzhen stock exchanges exceeded 34.519 billion yuan, setting a new historical record.

In an interview, analyst Shen Zhengyang from Northeast Securities attributed the substantial rise in A-shares to significant gains in Hong Kong stocks and other Chinese assets during the National Day holiday, which created momentum for A-shares to catch up. However, he pointed out that the excessive opening increase led some investors to lock in profits, resulting in a pullback later in the day.

During the recent National Day holiday, the A-shares market remained closed, but both Hong Kong and U.S.-listed Chinese stocks performed remarkably well. The Hang Seng Index surged over 9% during this period, while the Hang Seng Tech Index saw a rise of more than 13%. Additionally, the Nasdaq Golden Dragon China Index recorded impressive gains of over 11% in the previous week, significantly outperforming the three major U.S. indices.

When it comes to sector performance, data from Eastmoney showed that most sectors in the A-share market experienced gains, with only the tourism and hotel sector seeing a slight decline. The semiconductor, software development, and electronic chemicals sectors led the way, increasing by 18.16%, 17.18%, and 15.18% respectively. The securities sector, regarded by many investors as a “bull market leader,” hit its daily limit with a 10% increase, with all listed brokerages rising except for Haitong Securities and Guotai Junan, which were suspended from trading.

Looking ahead, Hu Mohan, a fund manager at Mingze Investment, noted that while the market’s fundamentals are gradually improving, they have not yet fully stabilized. He advised investors to remain rational amid the current upward trend, anticipating that A-shares may continue to rise in the fourth quarter. However, he cautioned that investors should be prepared for potential fluctuations and corrections along the way.