Mainland China Stocks Surge Amid Stimulus Optimism
Mainland China stocks extended their winning streak to seven sessions as investors looked positively at potential new stimulus measures to counter economic slowdown. Hong Kong markets mirrored these gains. Beijing may inject 1 trillion yuan into major state banks to bolster lending, positively impacting consumer staples and real estate shares.
- Country:
- China
Mainland China stocks continued their upward trajectory on Thursday, celebrating a potential seventh consecutive session of gains. Investors were buoyed by reports suggesting further stimulus efforts to mitigate economic deceleration in the world's second-largest economy. Hong Kong markets also reflected this positive sentiment in morning trade.
According to an unnamed source, Beijing is exploring the possibility of injecting up to 1 trillion yuan ($142.48 billion) into its largest state banks. This capital boost is aimed at enhancing their capacity to support the faltering economy and comes on the heels of earlier stimulus measures announced this week,—the largest since the pandemic began. "Although these measures will not fundamentally reverse the low appetite for credit in the economy, they will at least bolster lending in support of public investments," Tianchen Xu, a senior economist for China at EIU, commented in a note.
At the midday mark, the Shanghai Composite Index had risen by 0.64% to 2,914.74 points, and the blue-chip CSI300 Index had gained 0.71%, reaching 3,425.66 points. Leading the gains were consumer staples and real estate shares, which saw increases of 3.42% and 3.19% respectively. Chinese H-shares listed in Hong Kong appreciated by 2.77%, taking the Hang Seng Index up by 2.32%, closing at 19,572.45 points. Meanwhile, the smaller Shenzhen index rose 0.57%, the ChiNext Composite Index dipped by 0.22%, and Shanghai's STAR50 tech-focused index inched up by 0.13%.
(With inputs from agencies.)
- READ MORE ON:
- China
- stocks
- stimulus
- economy
- Beijing
- state banks
- lending
- investment
- Hong Kong
- market gains
ALSO READ
Tensions Persist Over Sabina Shoal Amid Manila-Beijing Talks
Tensions Escalate Between Manila and Beijing Over South China Sea
FinDoc Finvest Enters Digital Lending Space in India with Short-term Personal Loans
China and Russia Criticize West at Beijing Military Diplomacy Forum
UPDATE 2-Beijing suspends PwC's China unit for six months over Evergrande audit