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Hong Kong and Shanghai stocks soared at the open Tuesday after China’s leadership said it would take a more “relaxed” approach to monetary policy as they look to reignite the stuttering economy.
The Hang Seng Index jumped 3.21 percent, or 655.96 points, to 21,070.05, while the Shanghai Composite Index climbed 2.58 percent, or 87.75 points, to 3,490.29.
The Politburo, the country’s top decision-making body, led by President Xi Jinping, “held a meeting to analyse and study the economic work of 2025”, state news agency Xinhua said Monday.
“We must vigorously boost consumption, improve investment efficiency, and comprehensively expand domestic demand,” officials were quoted as saying.
The announcement comes as Beijing contemplates the second term of Donald Trump in the White House, with the president-elect indicating he will reignite his hardball trade policies, fuelling fears of another standoff between the superpowers.
Leaders have battled for almost two years to kickstart the world’s number two economy, which has been battered by weak domestic consumption and a debilitating property sector crisis.
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