The A-share market on the Chinese mainland has seen a sharp upswing over the past fortnight, with daily turnover hitting unprecedented levels as investors jump in to fuel a rally. Buoyed by record-breaking transaction values, traders are betting on fresh policy support to keep momentum alive.
Despite the upbeat mood, some market participants express caution over the sustainability of the current rally. With valuations stretched and global uncertainties still at play, the next catalyst hinges on concrete moves from Beijing.
According to James Wang, head of China strategy at UBS Investment Bank, investors are fixated on potential monetary and fiscal measures from the Chinese mainland authorities. “We’re watching for clear signals on targeted rate cuts or new infrastructure spending,” Wang explains. “These steps could unlock the next leg of market gains.”
Wang adds that while sentiment has improved, volatility could return without tangible policy direction. “The rally has been largely driven by speculative inflows,” he notes. “Sustaining it will require real economic ammunition from Beijing.”
For young global citizens, entrepreneurs and digital nomads tracking emerging markets, the Chinese mainland’s policy roadmap will be key. As the A-share market awaits its next cue, the interplay between investor enthusiasm and government action will shape the outlook in the weeks ahead.
Reference(s):
cgtn.com
