SHANGHAI: China and Hong Kong stocks closed up on Thursday as investors awaited the outcome of a key economic policy meeting for cues into policy easing next year.
China’s blue-chip CSI300 index rose 1.0% by market close and the Shanghai Composite Index gained 0.9%. Hong Kong benchmark Hang Seng added 1.2%.
The focus is on the annual Central Economic Work Conference (CEWC) this week, with potential policy announcements expected. This follows Monday’s Politburo meeting, where leaders pledged to adopt an “appropriately loose” monetary policy to stimulate economic growth.
“As we go into the CEWC, we may have some disappointed offshore investors,” said UBS trader Kenyon Tse, adding that for offshore investors, every announcement gets a lot more scrutiny in terms of details.
“If you read through the transcript of last year’s CEWC, it was more big picture. It was more directional, not as much detail.”
Analysts at BNP Paribas said if indeed there is concrete fiscal policy follow-through to “expand domestic demand in all aspects” in the CEWC or the National People’s Congress, it should trigger a substantial upward revision to corporate earnings expectations in 2025 and a more sustainable tailwind to Chinese equities both onshore and offshore.
Financials and consumer staples added 1.3% and 2.1%, respectively, leading the rise in the onshore market.
China will expand its private pension scheme nationwide from Dec. 15, after trials in 36 cities, in a bid to help a rapidly ageing population, the state media said. Some market participants expect the expansion to bring more long-term capital to the market.
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