China's Market Resurgence: Investors Bet on Stimulus Strategies
China and Hong Kong stocks rose due to optimism over potential stimulus measures, offsetting concerns about renewed trade tensions under a Trump presidency. Key indices showed substantial gains, driven by consumer and financial shares, as investors anticipated fiscal and monetary interventions from Beijing to boost China's economic growth.
Stocks in China and Hong Kong experienced an upward trend on Thursday, fueled by investor anticipation of fresh stimulus measures that overshadowed concerns about increased trade tensions under a potential second term for Donald Trump.
The blue-chip CSI300 Index saw a 3% rise, while the Shanghai Composite Index closed 2.6% higher. The focal point for investors is now the National People's Congress Standing Committee meeting, which ends on Friday, and any unexpected stimulus announcement from this meeting could further uplift the Chinese market sentiment.
David Chao, a global market strategist with Invesco, expressed confidence in significantly more fiscal and monetary stimulus from Beijing, which could balance the trade challenges. Consumer-related and financial stocks led the gains as market participants anticipate further stimulus measures.
(With inputs from agencies.)
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