Comment on China's stock markets are partying like it's 2008, overwhelming systems

China's stock markets are partying like it's 2008, overwhelming systems

China's stock markets surged this week after the country announced aggressive stimulus measures to boost its flagging economy.Zhang Peng/LightRocket/Getty ImagesChina's stock markets surged this week, marking the best weekly performance since late 2008.The rally was driven by Beijing's aggressive stimulus measures to boost the struggling economy.The surge overwhelmed trading systems, highlighting the intense investor response to the stimulus.China's stock markets closed sharply higher Friday, notching their best week in 16 years as investors joined the rally party.The euphoria was thanks to Beijing's big-bang stimulus announcement on Tuesday, which showed the authorities' urgent and concerted commitment to boosting its ailing economy.Since Tuesday, Chinese authorities have flooded the market with announcements of interest rate cuts, bank reserve ratio reductions, liquidity injections, and pledges to boost fiscal spending.

 

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