HONG KONG: Chinese stocks advanced on Monday, with insurers and brokers leading gains, as upbeat trade data and top policymakers pledging to support the economy boosted sentiment.
The benchmark Shanghai Composite Index closed up 0.5 percent to 3,924.08, and the blue-chip CSI 300 Index jumped 0.8 percent to the highest level since November 14.
China will keep expanding domestic demand and support the broader economy with more proactive measures in 2026, including “more proactive fiscal policy” and “appropriately loose monetary policy”, Politburo, the top decision-making body of the ruling Communist Party, said on Monday.
That follows the better-than-expected export data, which was buoyed by a boost from a US tariff truce.
Leading gains, the CSI Investment Banking and Brokerage Index jumped 2 percent and the insurance sector rallied 1.3 percent.
Wu Qing, chairman of the China Securities Regulatory Commission (CSRC), said on Saturday that the regulator will allow top financial firms to relax capital requirements and leverage limits to work more efficiently.
That came after the insurance sector regulator said on Friday that it will lower the risk factor for insurers holding certain stocks, a move that could reduce capital requirements and free up more funds for investment.
Both announcements showed regulators’ loosening stance, which “will encourage incremental money from institutions into the equity market”, Goldman Sachs said.
Meanwhile, the CSI AI Index jumped 3.1 percent and the chip shares added 2.2 percent, as optimism toward domestic chips continued to buoy the sectors.
The property sector added 0.2 percent to recover from the sell-off last week triggered by Vanke’s debt problem.
In Hong Kong, the benchmark Hang Seng Index weakened 1.2 percent and the Hang Seng Tech Index closed flat.
Investors are now watching the potential Central Economic Work Conference later this week for more cues on policy directions.