China’s Markets Surge Amid Stimulus Measures, Triggering Trading Delays

China’s stock markets surged on Friday following the introduction of long-awaited stimulus measures, but the rapid increase in trading overwhelmed systems, causing delays and disruptions. In the first hour of trading, turnover reached 710 billion yuan ($101 billion), prompting glitches at the Shanghai Stock Exchange. According to statements from brokerages and reports from Bloomberg News, the exchange faced significant delays in processing orders, affecting the market’s operations.

The Shanghai Stock Exchange has launched an investigation into the cause of the disruptions. A statement confirmed that they are looking into the reasons for the delays, which coincided with a rapid surge in trading volume. For nearly an hour from 10:10 a.m., the Shanghai Composite Index remained static, even as the Shenzhen composite jumped 4.4%. When trading resumed, the Shanghai index quickly surged upward.

While some traders continued to experience delays in the afternoon, onshore turnover diminished after 1 p.m. local time. “I only recall a trading delay like this one during the 2015 rally,” said Du Kejun, fund manager at Shandong Camel Asset Management Co. “Although it was a small disruption for us, it could have been a bigger issue for firms looking to increase positions today.”

China’s markets have rebounded strongly this week, erasing earlier losses for the year, as a result of a series of aggressive stimulus measures. The volume of trading reached near 1 trillion yuan in the morning session, surpassing typical daily totals seen in recent months. Investors flocked to the markets amid concerns of missing out on opportunities sparked by China’s boldest policy moves in years. The market rally, driven by a 15% rise in the onshore benchmark, has made this five-day stretch leading up to the national holiday the busiest on record.

The rally comes after a Politburo meeting, led by President Xi Jinping and other senior Communist Party officials, where they committed to strengthening fiscal and monetary policies. The Politburo pledged to “strive to achieve” the country’s annual economic targets and took their strongest stance yet on stabilizing the struggling property sector, vowing to halt its decline.

“The trading system is simply overwhelmed. There is a huge stampede of stock bulls,” said Hao Hong, chief economist at Grow Investment Group, in a post on social media platform X.

Despite the disruptions, the market’s response to the stimulus measures underscores the heightened enthusiasm and optimism among investors as China moves to bolster its economy.