Invesco's Global Market Strategist has indicated that the rebound in China's stock market is expected to continue. Following the introduction of an economic stimulus package that includes a $114 billion fund, the stock market has achieved its best performance week since 2008.

The CSI 300 Index has risen nearly 15% this week, marking its best performance since November 2008, when a similar stimulus package was announced in our country. The stock market has rebounded with strong policy support for the capital market, orderly development of the real estate sector, and a boost to domestic consumption.

On Tuesday, the People's Bank of China announced an 800 billion yuan ($114 billion) fund to provide loans for companies to repurchase their own stocks and to supply funds for non-bank financial institutions such as insurance companies to purchase stocks.

On Friday, the CSI 300 Index increased by 4.47%, while the Hang Seng Index in Hong Kong rose by 3.55%, with gains exceeding 12% since the beginning of the week, marking the largest single-week increase since it reached a historical high in August 2007.

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Nicholas Yeo, Head of China Equities at Abrdn, stated, "We are now at a critical moment for China's economy and its stock market," pointing out in a report that the recent interest rate cut by the Federal Reserve will also be a significant tailwind. He said, "Global easing conditions are expected to enhance consumption, which is a major benefit for China, the world's largest exporter."

Hope for more stimulus measures in China has also boosted European stock markets. The pan-European Stoxx 600 Index closed at a record high on Thursday, with luxury goods groups benefiting from increased spending by Chinese consumers.

Prior to the rebound in China's stock market, Wall Street also saw gains, with the S&P 500 Index setting a new closing high for the third time this week on Thursday, as stocks climbed ahead of Friday's inflation report release.Citigroup has stated that the past three days have been the busiest for its Asia equity sales and trading team, with a significant influx of client funds into Hong Kong and mainland Chinese stocks, setting a record.

Due to the trading frenzy on Friday morning, the exchange issued a notice indicating that the trading pace was "abnormal."

Bank of America's equity strategist, Winnie Wu, said, "We cannot view this as the same old policy. This is the first time the Chinese government has encouraged leveraged investment in the stock market. There is still a lot of room for growth in a liquidity-leveraged rebound."

Invesco's Global Market Strategist, David Chao, indicated that the rebound in China's stock market may continue. "The Chinese market is about momentum, and I see some similarities between the current rebound and the 2014-15 rebound," when the Shanghai Composite Index rose by approximately 150% between June 2014 and June 2015.

David Chao added that with the Federal Reserve's interest rate cuts leading to a continued weakening of the US dollar, he anticipates that "funds may shift from expensive and crowded global tech stocks to cheaper emerging market assets."