HONG KONG: China and Hong Kong stocks surged at open on Tuesday after top policymakers vowed to ramp up policy stimulus to spur growth.
China, Hong Kong stocks ease as inflation slows
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The blue-chip CSI300 index rallied 3.2% at open, while the Shanghai Composite index added 2.6%.
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Hong Kong’s benchmark Hang Seng jumped 3.2% at open, adding to Monday’s 2.8% gain. The tech index surged 4.2%.
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Next year, China will adopt an “appropriately loose” monetary policy, the first easing of its stance in some 14 years, alongside a more proactive fiscal policy to spur economic growth, state media Xinhua reported after-market on Monday, citing a readout of a meeting of top Communist Party officials, the Politburo.
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Authorities will also step up “unconventional” counter-cyclical adjustments, focusing on expanding domestic demand and boosting consumption, the report added.
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“The strong tone on policy stance suggests that Beijing is very determined to stabilize growth and will step up fiscal spending next year,” Nomura economists said.
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For 2025, Beijing may stick to “around 5.0%” GDP growth target and raise the fiscal deficit to GDP ratio to 4.0% from 3.0% in 2024, they added.
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Investors will now turn their focus to this week’s Central Economic Work Conference, where key targets and policy directions will be set for the next year.
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