China's Stock Market Surge: Real Estate and Consumer Goods Lead the Way

China's stock market rebounded on Thursday, driven by real estate developers and consumer goods sectors. This growth is fueled by optimism from anticipated U.S. interest rate cuts, providing Beijing with more leeway to stimulate its ailing economy. Hong Kong markets also saw significant gains, mirroring positive investor sentiment.

China's stock market surged on Thursday, recovering from early losses, thanks to significant gains in the real estate and consumer goods sectors. Investors are hopeful that the anticipated U.S. interest rate cuts will offer Beijing more flexibility to stimulate its ailing economy.

China's blue-chip CSI300 Index and Shanghai Composite Index increased by 0.8% and 0.6%, respectively. Meanwhile, Hong Kong's Hang Seng benchmark climbed 1.8%, with the Hang Seng Tech Index soaring over 3%. On Wednesday, the U.S. Federal Reserve initiated a series of expected rate cuts, beginning with a substantial half-percentage-point reduction.

Investor sentiment improved with the U.S. rate cut, providing Beijing the opportunity to ease monetary conditions without putting undue pressure on the yuan. Shen Zhengyang, an investment advisor at Northeast Securities, highlighted that the market's rebound will depend on China's easing measures' strength. Over in Hong Kong, the city's Monetary Authority reduced its base rate by 50 basis points following the U.S. lead, further aiding the market's upward momentum.

(With inputs from agencies.)