China’s Market Sees Best Day with 3.5 Trillion Yuan Traded as Hong Kong Plummets: CSI 300 and Hang Seng Indices Reflect Contrast

The best day for the Chinese market saw a trading volume of 3.5 trillion yuan in stocks, while Hong Kong's market was on pause. The CSI 300 Index reduced its gains after hitting an all-time high within the day, while the Hang Seng Index experienced its most significant drop since 2008.

The CSI 300 Index, that monitors the largest corporations in Shanghai and Shenzhen, ended up 5.9 percent higher, following an earlier intraday leap of 10.8 percent, marking its most substantial percentage increase. An unprecedented 3.5 trillion yuan (equivalent to US$500 billion) worth of stocks were traded on the mainland, which exceeded the peak recorded on September 30.

The stock market in Hong Kong experienced a significant drop, with shares valued at a historic HK$620 billion being traded. The Hang Seng Index, a key indicator of market health, saw a sharp decrease of 9.4 per cent, which is the most severe since 2008, erasing all progress made during the period when mainland markets were closed.

"Without a significant and immediate increase in expenditure, the positive outlook might quickly vanish, causing investors to hesitate in pursuing this surge," stated Stephen Innes, the managing director at SPI Asset Management. "There's a genuine possibility of letdown, and worries regarding China's cycle of rapid growth and sudden collapse are still the main focus."