**China’s Stock Market Roars Back to Life as Investors Flock to Equities**
A tidal wave of investor enthusiasm has swept through China’s stock market, driven by a cocktail of government stimulus and fear of missing out on a potentially historic rally. Brokerages are overflowing with retail clients, and trading systems are straining under the weight of a burst of orders as investors shift money out of bonds and deposits into stocks.
For 30-year-old office worker Darren Wang, the allure of easy riches is too great to resist. “With deposit rates stuck in the doldrums and real estate investment looking shaky, the only way to get rich is to double down on stocks,” he said, echoing the sentiments of many others.
The CSI300 Index has surged 16% in its best week since 1998, fueled by a slew of government stimulus measures, including interest rate cuts and a $114 billion war chest to boost share prices. While many of these policies have yet to take effect, investors are undeterred, convinced that the government’s backing will propel the market to new heights.
Wen Hao, a manager at a tech startup in Hangzhou, drew parallels to the bull run of 2015, when Shanghai’s stock benchmark doubled in just six months. “Life has been tough for so long, and finally, it’s time to make some money,” he said, citing the huge sums of state-backed money pouring into the market.
The central bank’s recent moves, including a swap program worth 500 billion yuan and a 300 billion yuan re-lending facility, have added fuel to the fire. Brokerages are struggling to keep up with the demand, with some even opening on weekends to process new account requests.
As the market surges, investors are rotating out of safer assets, sending China’s 30-year treasury bond futures tumbling to a two-month low. “A money migration of epic scale is coming – trillions are shifting out of bond funds, wealth management, and other fixed-income products, into equities,” said Zhao Jian, head of Atlantis Finance Research Institute.
While some veteran investors remain cautious, many others are convinced that the rally will power ahead, driven by the sheer weight of money pouring into the market. As one investor quipped, “If you look at the trading volume, the rally will likely be sustained. I have cash ready, and I’m waiting for a major correction so that I can get in.”
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