In preparation for the possible rush of orders after the long holiday- China stocks resume trading on the 8th, and the Shanghai and Shenzhen Stock Exchanges launched network-wide testing on the 7th

As China’s National Day holiday wraps up, trading on the Shanghai stock market is set to resume on October 8. According to reports from Chinese media, the Shanghai Stock Exchange (SSE) will conduct a comprehensive round of full network testing on October 7. The Shenzhen Stock Exchange (SZSE) is also slated for similar tests that day. This comes in the wake of notable government intervention aimed at stabilizing the market, which has recently led to a strong rebound in A-shares. It’s worth mentioning that the SSE faced a system crash during morning trading on September 27 due to a surge in orders. Following a thorough network test on September 29, preparations are now in place to support what is expected to be lively trading activity as the holiday concludes.

CCTV News reported that the thriving stock market has heightened demands on trading systems. The SSE is planning to carry out full network testing on October 7 to create a connectivity testing environment for institutions verifying their systems. While the SSE assures that this testing is a standard procedure after a holiday, it takes on increased significance given that trading volume has surpassed 2.5 trillion yuan (about $356 billion) on particularly busy days.

The upcoming testing will include a diverse group of participants, such as technology and information subsidiaries of the SSE, core financial institutions, and brokerage firms. The securities accounts, trading units, and designated transactions utilized during the testing phase will be aligned with data from the trading environment as of market close on September 30, effectively simulating a full trading day. Additionally, there are indications that the SSE is considering expanding its equipment to better accommodate the uptick in market activity, with specific plans currently under review.

In the wake of a press conference held on September 24, where leaders from the People’s Bank of China, the China Banking and Insurance Regulatory Commission, and the China Securities Regulatory Commission announced a comprehensive package of financial measures to support economic development, the stock market experienced remarkable gains. From September 24 to 27, A-shares saw a broad surge, culminating in a historic trading volume surpassing 2.6 trillion yuan on September 30, the last trading day before the National Day holiday. The rapid rise in the stock market prompted many Chinese investors to voice their eagerness to keep trading, with some saying they “didn’t want a holiday” and were keen to capitalize on the upward trend.

Meanwhile, during the Chinese stock market’s holiday break, Hong Kong stocks maintained their upward movement. Statistics from the Economic and Financial Research Institute of Industrial Bank, cited by CCTV, indicate that the Hang Seng Index rose a cumulative 7.59% from October 2 to 4, while the Hang Seng Tech Index recorded a 10% gain. Industry insiders suggest that the robust performance of the Hong Kong market during the holiday could serve to bolster A-shares in the days following the holiday.