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for chinese stocks, the prevailing sentiment has turned optimistic.

bloomberg analysis reports that china announced a generous stimulus plan last week, pushing a chinese stock index traded in hong kong to its largest weekly gain in nearly 13 years, making it expected to become one of the biggest winners in the global stock market in 2024. additionally, investors chasing the gains came as the cost of hedging next month's volatility rose to a two-year high relative to a six-month contract, reflecting confidence in the medium-term outlook.

in just a few days, china has launched a number of stimulus measures, covering everything from consumer spending to the property market and the local stock market. earlier this month, the hang seng china enterprises index had barely risen this year, but now it has rebounded by more than 22% for 11 consecutive trading days, which is the longest consecutive rise since the boom period in 2018.

michael oh, a san francisco-based portfolio manager at matthews asia, said the rally could continue if investors are convinced china will continue to support the market. the chinese market is too cheap.

earlier this month, the hang seng china enterprises index was valued at nearly 7 times expected earnings over the next 12 months, compared with a five-year average of more than 8 times.

as stocks rose, the cost of protecting against a decline in the soe index was the lowest since 2015, when the index hit a multi-year high.