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this week, boosted by favorable policies, chinese stocks have launched a hot rally. this not only excited domestic investors, but also ignited the confidence of wall street investors across the ocean.

many wall street investors believe that the chinese government’s determination to support the economy can be seen from this week’s series of favorable policies. most of them believe that the rise in chinese stocks will continue.

most on wall street are optimistic that china's stock market will continue to rebound

the csi 300 index rose 15.7% this week, marking its strongest weekly performance since november 2008. hong kong's hang seng china enterprises index rose for 11 consecutive trading days, setting a record for the longest rise since 2018.

as a series of favorable policies are announced and the market continues to be hot, the latest comments from many major wall street banks have added fuel to the market's enthusiasm, making more wall street traders believe in the sustainability of this round of rebound.

goldman sachs group said that investors are increasingly feeling panic about missing out on this wave of china's market, and investors seem to be increasingly drawing the conclusion:current rally 'probably won't subside this time'，"i really think this time is different for chinese stocks."

goldman sachs data shows that on tuesday alone, goldman sachs’s prime brokerage business set a record for the largest single-day net purchase of chinese stocks since march 2021. it was also the second largest net purchase of chinese stocks in the past decade. record.

barclays analysts said in a report that china's stimulus measures could add a full percentage point to the country's gross domestic product (gdp) within two years, as they believe the plan shows china is now "serious about structural issues."

morgan stanley predicts that the csi 300 index still has 10% room for growth.

according to a bloomberg survey,eight of 12 wall street investors surveyed this week believe now will be a turning point in the long-term rebound in chinese stocks.

in addition, optimistic investors now regard chinese technology stocks as their first choice, while before this round of rebound, wall street preferred to choose more defensive stocks, which shows that wall street's confidence in the chinese market has significantly improved.

the market sees china’s determination to support the economy

manish bhargava, ceo of straits investment management singapore, said, "the recent politburo statement is similar to mario draghi's 'whatever it takes' speech a decade ago,stressed firm determination to support economy。”

in july 2012, against the backdrop of the euro zone's deep debt crisis, draghi, who had just taken over as president of the european central bank at the time, uttered what may be the three most famous words in the history of global central banks - "whatever it takes" "at all costs)" and pledged that the ecb will maintain the stability of the euro within its mandate at all costs.

bhargava added: "the rally in chinese stocks this time has been very strong."

homin lee, senior macro strategist at lombard odier singapore ltd., said: "the politburo's communication and the market's positive reaction to it indicate that the chinese government has passed fairly strong forward guidance on fiscal policy and real estate industry stability,seize the initiative to counter bearish views on china’s power。”

investors betting that china will take more fiscal measures will continue to buy, which means the rally in chinese stocks will continue, he added.