The recent rally in China's stock markets, fueled by a series of stimulus measures, has significantly ignited investors' enthusiasm and bolstered market confidence in the country's economic recovery.
The benchmark Shanghai Composite Index surged 8.06 percent to close at 3,336.50 points on Monday, while the Shenzhen Component Index soared 10.67 percent to reach 10,529.76 points at the close.
The ChiNext Index, a NASDAQ-style subsidiary of the Shenzhen Stock Exchange tracking growth and tech-heavy enterprises, skyrocketed 15.36 percent to close at 2175.09 points.
Monday is the last trading day before the week-long National Day holiday. Chinese stock markets will be closed from Tuesday through Oct. 7.
The trading volume on the Shanghai and Shenzhen bourses hit some 2.6 trillion yuan (about 370 billion U.S. dollars) on Monday, reaching a historic high.
More than 700 stocks listed on the two bourses hit their daily limits, with over 2,700 stocks gaining more than 10 percent.
China last week unveiled a slew of stimulus measures, including interest rate cuts, aimed at boosting economic growth and stabilizing the property market, triggering a broad rally in the stock market.
"In today's market performance, securities firms, liquor producers and real estate developers topped the gainers list. Judging by the current situation, with the continuous introduction of policies to ensure stable growth and marginal improvements in economic data, economic expectations are expected to warm up. With the establishment of a 'policy bottom,' optimistic anticipation of future policies is likely to further boost the stock market. Funds are still rapidly increasing positions in the main board index, indicating a potential continuation of the upward market trend," said Tian Lihui, director of the Institute of Finance and Development at Nankai University in north China's Tianjin Municipality.
Following this short-term surge, continued optimism over economic policies is likely to further elevate the stock market, with further increases expected in the Shanghai Composite Index, according to Yang Delong, chief economist at Qianhai Open Source Fund.
A series of monetary, fiscal, and capital market policies released in a short period of time are catalyzing this growth momentum, leading to a comprehensive reversal in policy expectations, Yang said, noting that optimistic economic forecasts are beginning to take root, significantly boosting investor confidence as a result.
China's stock market embraces epic surge ahead of National Day holiday
