Chinese Stocks Surge Amid Promises of Economic Revitalization

China and Hong Kong stock markets saw significant gains as policymakers introduced new stimulus measures to boost economic growth. However, disappointing trade data kept gains in check. Key sectors like real estate and consumer staples led the surge, as authorities promised further economic stabilization measures.

Chinese stocks surged on Tuesday as top officials announced a series of stimulus measures to revitalize economic growth, despite lackluster trade figures somewhat limiting the gains. The blue-chip CSI300 index recorded a 1.9% rise by midday, reaching its peak in nearly a month, while the Shanghai Composite index rose 1.6%.

The real estate sector led the charge with a 3.2% increase, followed closely by a 2.8% rise in consumer staples onshore. Over in Hong Kong, the Hang Seng index climbed 1% by noon after an initial leap of 3.2%, and the tech index noted a smaller 0.8% gain.

Bullish sentiment arose after China's Politburo adjusted the monetary policy, indicating a shift from 'prudent' to 'appropriately loose' for the first time in over a decade, aiming to spur growth, state media Xinhua reported. Authorities have committed to stabilizing stock and housing markets with fiscal adjustments.

(With inputs from agencies.)