Chinese domestic equities are worth more than US$10 trillion ($13.59 trillion) for the first time since 2015, when a record crash erased half the market’s value in months and saddled millions of investors with losses.

The world’s second-largest stock market has added US$3.3 trillion since a low in March, helped by Beijing’s policies to encourage equity trading, a flurry of new listings and the strengthening yuan. Stocks have been close to the US$10 trillion milestone since July, when China’s government acted to tame a speculative rally that had suddenly pushed a gauge of large caps near a 12-year high.

The country’s total market capitalisation is now US$10.04 trillion and just shy of the all-time high, according to data compiled by Bloomberg as of Oct. 12. The US has the world’s most valuable stock market at US$38.3 trillion.

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Chinese shares have rallied since a long holiday break on optimism the government will introduce reforms to turn the region around Shenzhen into a global technology hub and that the ruling Communist Party will introduce policies to stimulate demand when it holds a major meeting later this month. Equities surged over the summer as margin debt climbed at the fastest pace since 2015 and turnover soared.

A stronger yuan has also helped stocks. China’s currency rose 3.9% last quarter, the most in 12 years. That advance has prompted the central bank to restrain the yuan’s rally while stopping short of encouraging declines.

China has added a new stock venue since 2015, with the Nasdaq-style Star market launching in Shanghai in July last year. Regulators waived rules on valuations and debut-day price limits for shares on the board.

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