Chinese Stocks Surge as Beijing Unveils Historic Stimulus Measures

Chinese and Hong Kong stocks extended gains as investors processed Beijing's comprehensive stimulus package. Measures include rate cuts and mortgage easing, aiming to stabilize the property market. Analysts, however, are cautious about the long-term economic turnaround. Key sectors, such as real estate and brokerage, saw significant gains.

Chinese and Hong Kong stocks continued their upward trajectory on Wednesday, though momentum slowed in the afternoon as investors assessed Beijing's sweeping stimulus package announced the day before.

The CSI300 Index of China's blue-chip stocks saw a 1.5% increase, building on a 4.3% rise from the previous session. Similarly, Hong Kong's Hang Seng Index closed 0.7% higher, adding to Tuesday's 4.1% surge.

Beijing introduced its most significant stimulus measures since the pandemic, including rate cuts, relaxed mortgage requirements, and new funding for equity purchases, aiming to revitalize activity and stabilize the property market. The People's Bank of China subsequently reduced the one-year medium-term lending facility loan rate to 2.00% from 2.30%.

(With inputs from agencies.)