On the morning of Tuesday, October 8, trying to open a share account in China was nothing short of a challenge. It was as if the whole country suddenly wanted to take advantage of that day's stock market boom, buoyed by the hope of further announcements of support for the economy. There was no way to speak to an advisor at Galaxy Securities or China Securities; at rival brokerages Guotai and Guangfa, all lines were saturated.

In recent weeks, state agencies have stepped up their stimulus measures. The operation began at the end of September, in the run-up to China's national vacation week (Golden Week, October1-7), at a moment when all indicators were pointing to an ailing economy, from sluggish industrial activity to high youth unemployment. On September 26, the central bank announced a cut in its key interest rates and a major package designed to boost stock markets. The government, for its part, lowered the down payment required to buy an apartment and reduced mortgage rates.

Most major cities followed suit: Guangzhou and Shenzhen abolished limits on the number of apartments a family can buy, while Shanghai reduced from three to one the number of years households must be able to prove they have paid their social security contributions before buying.

Above all, the powers seem – at last – to have realized the scale of the country's difficulties, whereas President Xi Jinping had hitherto shown little inclination to offer help to ailing property developers and stockbrokers. On September 26, just a few days before the vacation week, the Political Bureau of the Chinese Communist Party's Central Committee, which assembles the 24 highest-ranking members of the party-state, devoted its monthly meeting to the economy, which is unusual for this time of year. "The fundamentals of the Chinese economy, its favorable conditions such as its large market, strong resilience and great potential, have not changed. But, at the same time, problems have emerged," it observed. Conclusion: "We need to increase the intensity of fiscal adjustments and monetary policies against this cycle."

These comments raised hopes – and even a certain frenzy. Many individuals thought that, at last, there would be an opportunity to earn a little money after four years of falling real estate prices, which had taken a heavy toll on their savings. In one week, Shanghai's CSI 300 index jumped 20%. Even Blackrock and Goldman Sachs raised their buy recommendations on Chinese equities.

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