Oct 30, 2024 04:02 AM
FINANCE
BSE 50 leaps 119% in a Month Driven by Speculation Fever
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The Beijing Stock Exchange was launched in November 2021 as the first bourse in the Chinese capital.
The Beijing Stock Exchange 50 Index closed up 3.68% Tuesday after rising more than 5.5% earlier in the day, with a surge in trading volume to 53.3 billion yuan ($7.47 billion), the second highest since the exchange’s launch in 2021.
The surge follows a volatile period in Chinese markets, marking a rapid recovery in smaller stocks despite broader market challenges. Analysts attributed the rally to speculative interest in small-market stocks, improved market sentiment and expectations of regulatory reforms.
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- The Beijing Stock Exchange 50 Index closed up 3.68% Tuesday after reaching a high of 1389.01 points, outperforming other major indexes with a 119.66% gain from Sept. 24 to Oct. 29.
- Speculative interest surged in small-cap stocks, with 96.86% of 255 companies gaining over 50% recently; this coincided with policy signals and liquidity improvements.
- Despite the broader market's uneven performance, BSE's high volatility attracts investors, with its daily price limits higher than other Chinese exchanges, fostering growth for small and medium enterprises.
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Who’s Who
- Shanghai i2FinanceTechnology Co. Ltd.
- Shanghai i2FinanceTechnology Co. Ltd. was one of the top performers on the Beijing Stock Exchange, with its shares surging by more than 400% during a recent rally. The increase came amid heightened speculative interest in small-cap stocks and improved market sentiment, contributing to significant gains across the BSE.
- Bosera Asset Management Co. Ltd.
- Bosera Asset Management Co. Ltd. is mentioned in the article in relation to Tang Yibing, who is associated with the company. According to Tang, the rally in the Beijing Stock Exchange 50 Index is driven by improved liquidity, heightened market sentiment, and the high volatility of smaller constituent stocks. The article highlights Bosera's analysis without providing additional details about the company itself.
- Tongguan Mines Construction Co. Ltd.
- Tongguan Mines Construction Co. Ltd. is one of the two companies on the Beijing Stock Exchange that experienced losses in the past month, despite the widespread gains among other small-cap stocks.
- Xinjiang Keli New Technology Development Co. Ltd.
- Xinjiang Keli New Technology Development Co. Ltd. is one of the two companies among the 255 listed on the Beijing Stock Exchange that experienced losses in the past month. Despite the overall surge in small-cap stocks on the BSE, Xinjiang Keli, along with Tongguan Mines Construction Co. Ltd., did not benefit from recent market enthusiasm focusing on speculative investments in small-cap stocks.
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What Happened When
- November 2021：
- The Beijing Stock Exchange (BSE) was launched
- November 2023：
- China's State Council signed off on a policy document to boost support for small and medium-sized enterprises traded on the BSE
- October 8, 2024：
- A-shares turnover peaked at 3.48 trillion yuan after fiscal stimulus policies to stabilize the stock market
- October 18, 2024：
- BSE Chairman Zhou Guihua hinted at upcoming reforms during a forum
- October 25, 2024：
- The BSE 50 Index reached a record high of 1389.01 points
- October 29, 2024：
- Beijing's financial authorities issued guidelines to enhance the development of inclusive finance
- September 24, 2024 to October 29, 2024：
- The BSE 50 Index posted a 119.66% gain
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