China's stimulus rally has already sent stocks up 25%. And there could be more to come

China stocks will keep rising after markets in the mainland reopen following the Golden Week break, analysts predicted.

Beijing's announcements of economic support last week have fueled China's CSI 300 blue-chip index to rally over 25% in a nine-day winning streak. On Monday, it popped over 8% to its best day in 16 years and the Shanghai Composite Index surged 8.06%, before the markets closed for a week-long holiday.

Then, Hong Kong stocks dropped on Thursday, ending a 6-day winning streak and sparking fears that China's stimulus rally could have started to fizzle out.

Now, one question on investors' minds is how long will the rally last?

In China, it could continue for an extended period after the mainland markets come back online next Tuesday, said Eugene Hsiao, head of China equity strategy at Macquarie Capital, who viewed the decline in Hong Kong on Thursday as "short-term profit taking given the sharp rise" a day prior.

Beijing's recent stimulus blitz coupled with higher participation from retail investors will likely fuel a longer rally, he said.

The rally could even continue through the end of the year, said Shehzad Qazi, chief operating officer at China Beige Book International.

But it faces the risk of "an ugly reversal in sentiment into 2025" if markets get disappointed with the impact of the stimulus measures, Qazi said, adding that he didn't think the measures were enough to address China's "structural economic problems."

Investors expect the stimulus measures to "produce blockbuster growth" to the economy in the coming months, and investor enthusiasm will dampen if the package only delivers a "modest lift," Qazi added.

Shaun Rein, founder of China Market Research, predicted that "there's still 1-3 weeks room left for