The Shanghai Stock Exchange apologised on Friday for an ‘abnormal slowdown’ in transactions that sent jitters through investors as they rushed in to pick up stocks after China unveiled a string of economy-boosting measures.
Equity markets in the city as well as Hong Kong and Shenzhen have rocketed this week in reaction to a raft of much-needed stimulus including help for the troubled property sector, interest rate cuts, making cash available to banks to lend and pledges to boost jobs.
The People’s Bank of China on Friday cut the amount of money banks must hold in reserve — as flagged on Tuesday — releasing an estimated $142.6 billion in liquidity into the financial market.
However, officials in the mainland financial hub said Friday their systems were coming under strain as traders rushed in.
‘After the market opened, there was an abnormal slowdown in the confirmation of transactions during stock auctions on our exchange, which had an impact on transactions,’ the bourse said in a social media statement.
‘Upon handling the situation, stock auction transactions were gradually restored from 11:13 am,’ the statement said.
‘The exchange expresses its deep apologies for this abnormal occurrence,’ it said.
The bourse gave no reason for the slowdown, though a previous statement on Friday said the cause was being investigated.
Comments on the X-like Weibo platform suggested that the incident had seeded chaos among investors.
‘There are people who... haven’t touched their accounts for many years rushing to ask their brokers about their fund accounts,’ one user wrote.
Another quipped: ‘They all say the real bull market has returned, and it’s time to roll up our sleeves and work hard. As a result, the exchange crashed.’
Nonetheless, the Hong Kong and Shanghai stock markets soared again Friday, with the latter recording its strongest weekly gain in 16 years.
The rally has seen a surge across several sectors, with beaten-down, debt-addled property firms among the biggest winners, having tanked since China embarked on a crackdown in 2020.
In Hong Kong, Kaisa Group rose nearly 77 per cent Friday and has almost doubled since Thursday’s close, while Sunac, which is undergoing a debt restructuring, is up about 60 per cent this week.
Fantasia Holdings is up around 50 per cent this week, as is Agile Group.
Tech firms, which have also had a painful few years owing to government moves to clamp down on the industry, were also enjoying some much-needed buying.
Ecommerce giant JD.com rose around 10 per cent Friday and 36 per cent this week, with rival and market heavyweight Alibaba piling on 20 per cent over the past five days.
Casino operators were lifted by hopes for a pick-up in once-big-spending mainland tourists.
Sands China rallied 14 per cent Friday, Wynn Macau nine per cent and Galaxy Entertainment 8.8 per cent.
