China stocks soar in record turnover
Bull run driven by government policy, state money
Investors rush to open accounts, borrow money to trade
SHANGHAIHONG KONG, Sept 30 Reuters Animal spirits are back in China39;s stock market as investors rush into equities, galvanized by Beijing39;s policy bonanza and driven by fear of missing out on what some see as a rally of historic intensity.
Brokerages are bustling with retail clients and a burst of orders is jamming trading systems as investors rotate money out of bonds and deposits into stocks, leading to an explosion in stock turnover and a jump in yields.
Deposit rates are too low, and real estate investment is no longer safe, said 30yearold office worker Darren Wang, who started buying stocks using borrowed money.
There39;s no other way to be rich other than redoubling bets on stocks. The market craze you see this time could be unprecedented.
Stocks have endured three years of gloom as economic activity struggled to return to prepandemic buoyancy while a debt crisis among property developers rippled through markets.
That gloom suddenly turned into euphoria last week as the bluechip CSI300 Index surged 16 for its best week since 1998, after the government announced a volley of stimulus including interest rate cuts and a 114 billion war chest to boost share prices.
Many of the policies are yet to be implemented and there is no guarantee they can fundamentally improve business conditions or cure economic illnesses,…