Mainland China’s key stock indices gained significant ground over the weekend, shortly after high-ranking policymakers responded optimistically to downbeat GDP figures on Friday.
The Shanghai composite jumped over 4% on Monday, peaking at 4.5% during earlier trading to close at around 2654.88.
The tech-heavy Shenzhen composite similarly gained 4.9%, after double-figure losses during a chaotic past few weeks.
China’s economic growth slowed to 6.5% year-on-year from 6.7% during the previous three months – the lowest figure in the decade since the global financial crash. Eager to prop up market sentiment, authorities doubled down on their confidence to reach annual targets and hinted at further steps to energise the economy.
Many market watchers are not so optimistic when it comes to the value of Monday’s rally, however.
“Eventually, at the end of the day, fundamentals will still rule,” Vasu Menon of OCBC Bank told CNBC. “You see a rebound today, but does it mean that the markets have turned a corner and you know, will hit higher? I’m not sure. I don’t think so.”