(Bloomberg) -- Chinese investors opened new stock trading accounts at the fastest pace in nine years as equities surged following a stimulus boost from Beijing.
Investors created 6.8 million accounts for trading onshore shares in October, the biggest monthly reading since June 2015, according to a Bloomberg tally of data released by the Shanghai Stock Exchange. The figure also exceeds the combined total of accounts opened between May and September.
The surge in new openings, mostly by individuals, shows a revival of animal spirits after a series of policy measures in late September sparked an epic rally in local shares. Investors attention now shifts to a key gathering of Chinese lawmakers this week, where a fiscal package is expected to be approved.
The flurry of retail activity follows months of anemic trading in the onshore market. In August, just 1 million accounts were opened — the lowest since February 2015. Before the stimulus-induced surge, the benchmark CSI 300 Index had slid to a five-year low, weighed down by a deepening property slump, weak consumption, and geopolitical headwinds.
Other indicators also suggest growing trading interest among China’s mom-and-pop investors. The outstanding value of margin debt on local stock exchanges has risen to a two-year high, despite A-shares trading below their early October peaks. Daily turnover topped 2 trillion yuan ($281 billion) in three of the past four sessions, triple the average from previous months.
These figures offer insight into the extent of retail participation after data tracking the number of new individual investors has gone missing for over a year.
--With assistance from April Ma.
©2024 Bloomberg L.P.
