Sector performance reports from the Hong Kong Stock Exchange

China Shifts to 'Moderately Loose' Monetary Policy, Boosts Fiscal Measures; Hang Seng Index Rises

Dec 9, 2024, 08:14 AM

China's top leaders have shifted their monetary policy stance for the first time in 14 years, changing from 'prudent' to 'moderately loose' for next year. At a Politburo meeting led by President Xi Jinping, they announced plans to implement more proactive fiscal policies and moderately loose monetary policies to support economic growth. The change aims to boost consumption forcefully, expand domestic demand in all aspects, and stabilize the property and stock markets. President Xi emphasized the need to maintain strategic focus and actively create a favorable external environment. The Hang Seng Index responded positively, rising 2.76% to close above 20,000 points, while the Hang Seng Tech Index closed up 4.3%. This unprecedented shift comes as China braces for a possible second trade war with the United States under President-elect Donald Trump, who is set to return to the White House next month.