China's Economic Landscape: Stocks Steady Amid Consumption-Boost Measures

Chinese stocks remained stable as the market evaluated mixed economic data and anticipated new policies to stimulate domestic consumption. While industrial output slowed, retail sales saw slight growth. The State Council announced a plan to increase consumption, including income boosting and childcare subsidies.

Chinese stocks remained relatively stable on Monday as investors took in a mix of economic data while awaiting further stimulus measures aimed at boosting consumption. The market's focus is on the State Council's plan to enhance domestic demand set to be revealed later today.

China's CSI300 Index showed a slight decline of 0.1%, while the Shanghai Composite Index saw a rise of 0.3%. Hong Kong's Hang Seng Index experienced a stronger gain of 1.3%. In broader economic terms, China's industrial output decelerated in January-February, while retail sales enjoyed a minor upturn, reflecting the complex challenges policymakers face under ongoing U.S. trade pressures.

Ahead of a pivotal press conference, the State Council introduced a 'special action plan' to invigorate consumption, spotlighting income growth and a new childcare subsidy scheme. UBS economists anticipate continued governmental intervention through 2025 to mitigate external economic pressures, including potential U.S. trade tariffs.

(With inputs from agencies.)