In the run-up to the week-long National Day holiday commencing on 1 October, Chinese policymakers gave the country’s stock market its best week in a decade.
Guolian Aquatic saw its share price jump by 15 percent on 30 September as China’s stock market roared back to life on the back of a government announcement of a planned economic stimulus package.
The shares of CNFC Overseas Fishery rose by 7.3 percent on the same day.
Overall, China’s blue-chip CSI 300 index of Shanghai- and Shenzhen-listed companies rose 8.5 percent on 30 September, pushed by an announcement of government efforts to stimulate the economy, including interest rate cuts and a new USD 100 billion (EUR 90 billion) government fund for investment in the stock market.
The Chinese Communist Party politburo has promised to boost the country’s capital market by removing obstacles to social security, insurance, and wealth management funds entering the market. It also suggested support should be provided for mergers and acquisitions of listed companies while advancing policies to protect small- and medium-scale investors.
China wants to revive the country’s capital markets as a way of boosting productivity across the economy. In recent years, Chinese venture capital has sharply contracted and been monopolized by local government funds, and private companies have been scared off initial public offerings by the slide in China’s stock market values, as well as tighter government regulation of certain sectors.
The rise in its share price is a reprieve for Guolian, which saw its revenue fall 25 percent year on year in the first half of 2024 due to fierce competition. A research note published by Chinese brokerage Huaxin Securities suggested the company’s future success lies in its growth of exports and development of higher-value products.
