The Chinese markets appear to be treading on the path of optimism as the the authorities of the second-largest economy in the world published their latest set of numbers denoting the progress of the Chinese economy.
Chinese Economy Grows At 4.6%
As per reports, China grew at a rate of 4.6 per cent in the third quarter of the fiscal year (YoY). This is lower than the growth rate attained in the third quarter of 2023, when the country grew at 4.7 per cent.
This is the slowest growth rate attained by the Xi Jinping-led country in a year and a half or about 18 months. This Chinese economy has been marred by sluggish growth, thanks to its strikingly low consumption rate. In addition, certain sectors and their downward spiral have aided the process of the slowdown. In this, the real estate sector has been an Achilles heel for the Chinese Communist Party.
Now, as we look at the performance or reaction of the equity markets to these developments, there appears to be a sense of optimism that is walking through the vestibules of the stock exchanges in China.
Markets React
Post the publication of the growth figures, major indices, including the CSI 300 Index, the SSE Composite and Hang Seng, were trading in green with significant gains in the intraday trade on Friday.
CSI 300 Index
The Shanghai-based CSI Index opened at 3,780.31 points and launched in new horizons after the lunch break.
At the time of writing, the index zoomed, with an increase of 3.62 per cent or 137.01 points, taking the value of the index to 3,925.23 points.
SSE Composite Index
Now, when we look at another major index in mainland China, the SSE Composite Index also surged in the trading session on the last day of the week.
The SSE index also made major gains after the lunch break, as it rose by an impressive 2.91 per cent or 92.18 points, rising to 3,261.56 as it approaches the closing bell.
Hang Seng Index
Arguably the most consequential index, away from the mainland, the Hang Seng Index also made gains of over 3 per cent in the intraday trade on October 18.
The Hang Seng index gained 3.32 per cent or 666.80 points, easily going past the 20,000 mark, reaching 20,745.90 points. Once again, the index saw a greater surge after the lunch break in today’s session.
Taiwan Index
Interestingly, the Taiex or the Taiwanese Index also flourished with gains of 1.88 per cent or 433.43 points.
This took the overall index from the island territory to 23,487.27.
