A-Share market capitalization gains 17 trillion yuan

Major indicators of China's stock market have hit record highs, with total A-share market capitalization gaining 17 trillion yuan ($2.35 trillion) and reaching the highest level in nine years, as the latest round of the stock market rally enters its third month on Monday.

The ChiNext, STAR 50, and BSE 50 indices have all posted record single-day gains, with A-share trading volume setting multiple new records in the past two months, according to cls.cn.

There has also been a surge in new account openings and significantly electrified trading activity.

In October, the Shanghai bourse witnessed its third-highest number of monthly account openings, driven primarily by individual investors, trailing only the highs of the second quarter of 2015 during the stock market boom then.

"The recent strong rally of the A-share market reflects the positive impact of government stimulus policies aimed at accelerating economic recovery and restoring market confidence. The measures have effectively boosted investor sentiment, fueling a market boom," Zhao Xijun, co-president of the China Capital Market Research Institute at the Renmin University of China, told the Global Times on Sunday.

In October, the People's Bank of China, the central bank, announced that it decided to set up the Securities, Funds and Insurance companies Swap Facility (SFISF), with an initial scale of 500 billion yuan to ensure "the healthy and stable development of the capital market."

The SFISF, the first monetary policy tool created by China to support the capital market, will allow eligible securities, funds and insurance companies to use their assets including bonds, stock ETFs and holdings in constituents of the CSI 300 Index as collateral in exchange for highly liquid assets such as treasury bonds and central bank bills, the central bank said in a statement, reported Xinhua News Agency.