SHANGHAI: China stocks jumped on Thursday on expectations that Beijing will take more aggressive measures to stimulate the economy, while an official’s speech also helped sentiment.
President Xi has told China’s financial cadres that active monetary policy toolkit must include a controversial means of injecting liquidity into the economy, South China Morning Post reported on Thursday.
Top legislator Zhao Leji said on Thursday that China’s economy will provide a strong driving force for the world recovery, promising the door of the country’s opening can only get bigger. China will reduce “negative list” for foreign investors, he said.
Also helping sentiment, sources said that China plans to issue some policy bank bonds earlier in the second quarter ahead of planned sales of special treasury bonds.
Broad Asian markets also rose, and investors are waiting on US core inflation figures due on Friday to gauge the Federal Reserve’s rate cut pace.
At the close, the Shanghai Composite index was up 0.59% at 3,010.66.
The blue-chip CSI300 index was up 0.52%. Its financial sector sub-index was lower by 0.68%, the consumer staples sector down 0.15%, the real estate index down 0.21% and the healthcare sub-index up 0.16%.
The smaller Shenzhen index ended up 1.72% and the start-up board ChiNext Composite index was higher by 0.954%.
At the close of trade, the Hang Seng index was up 148.58 points, or 0.91%, at 16,541.42. The Hang Seng China Enterprises index rose 1.44% to 5,810.79.
The sub-index of the Hang Seng tracking energy shares rose 2.1%, the IT sector rose 2.05%, the financial sector ended 0.22% lower and the property sector dipped 0.28%.
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