China's Stock Markets React to Government Stimulus Efforts

China's stock markets experienced modest gains on Monday with property shares benefiting from new government stimulus promises. Investor enthusiasm, however, remains subdued. Finance Minister Lan Foan announced increased government debt efforts, potentially boosting GDP growth. Weaknesses persist in tech shares, commodity prices, and the Australian dollar due to economic uncertainty.

China's stock markets saw a modest uptick in early trading on Monday as government promises of stimulus lifted property shares, albeit without rekindling the euphoria witnessed late last month.

The Shanghai Composite rose by 0.2%, while the CSI300 climbed 0.4%. In contrast, Hong Kong's Hang Seng Index fell by 1%, as the tech sector—a barometer for market sentiment—slid downward. The yuan opened weaker, trading at 7.0795 per dollar.

Finance Minister Lan Foan reiterated the government's commitment to increasing debt to bolster the economy, yet left investors wanting clarity on the exact timeline and extent. Goldman Sachs forecasts these measures could add 0.4 percentage points to growth next year, adjusting its 2025 GDP growth outlook from 4.3% to 4.7%.

(With inputs from agencies.)