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
The blue-chip CSI300 index rallied 3.2% at open, while the Shanghai Composite index added 2.6%.
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.
Authorities will also step up “unconventional” counter-cyclical adjustments, focusing on expanding domestic demand and boosting consumption, the report added.
“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.
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.
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.
Source: Brecorder
