China’s Stock Market Rally Sparks Investor Frenzy Amid Policy Shifts

China's equity markets are experiencing a historic surge, with the Shanghai Composite reaching a decade-high and Hong Kong's Hang Seng Index climbing 30% year-to-date. The rally, fueled by both institutional and retail participation, marks the most significant uptick since 2017.

The momentum crystallized on September 24, 2024—now dubbed the "9.24 performance"—when central bank governor Pan Gongsheng and senior financial officials staged an unprecedented joint briefing. Their intervention signaled deliberate market support, coinciding with retail investors abandoning stagnant bank deposits and a frozen property sector.

Regulators are actively orchestrating the rebound. Insurers and state-backed funds, traditionally passive players, have received directives to increase equity exposure. The campaign extends to international outreach, with officials highlighting growing foreign interest. Ark Investment Management's renewed position in Alibaba after a four-year hiatus underscores the shifting sentiment.