Chinese stocks continue to surge

ChiNext is up 11%

Beijing 50 i sup 14%

Shanghai Composite +4%

Hong Kong’s Hang Seng +1%

A blistering day of rallies in China. Stimulus efforts were rolled about last week, and continued over the weekend:

• More stimulus from China over the weekend – banks instructed to cut mortgage rates

Earlier today we had disappointing PMIs from China, but no one cares – this is ancient news in the light of all the new stimmy. there were some bright spots in the sub indexes, yes, but that’s not what is driving Chinese equities.

• China official PMI data: Manufacturing 49.8 (expected 49.5)
• China Caixin September Manufacturing PMI 49.3 (prior 50.4) Services 50.3 (prior 51.6)

This article was written by Eamonn Sheridan at www.forexlive.com.