China and Hong Kong Stocks Surge Amid Economic Policy Speculation

China and Hong Kong stocks experienced gains as investors anticipated economic policy shifts from the Central Economic Work Conference. China's blue-chip CSI300 Index rose by 0.8%, the Shanghai Composite saw a 0.6% increase, and Hong Kong's Hang Seng climbed by 1.7%. Financials, consumer staples, and consumer-related shares led the gains.

Stocks in China and Hong Kong saw a significant rise on Thursday, fueled by investor anticipation of the outcomes from a crucial economic policy meeting. China's prominent CSI300 Index saw a 0.8% increase by midday, with the Shanghai Composite Index up by 0.6%. Over in Hong Kong, the Hang Seng Index experienced a 1.7% rise.

The Central Economic Work Conference (CEWC) has become the focal point for investors looking for cues on potential policy relaxations set for next year. This follows the earlier Politburo meeting, where leaders committed to a looser monetary policy aimed at spurring economic growth. Kenyon Tse of UBS remarked about offshore investors' heightened scrutiny over these announcements.

Analysts from BNP Paribas suggested that if concrete fiscal policies are announced, particularly those that aim to expand domestic demand, it could result in upward revisions to corporate earnings by 2025 and positively impact Chinese equities. Meanwhile, financial and consumer staples sectors led the gains in China, while Hong Kong saw significant increases in consumer-related shares.

(With inputs from agencies.)