Beijing's Economic Ambitions Lift China and Hong Kong Markets

China and Hong Kong markets rallied after Beijing set ambitious growth targets and pledged support for domestic consumption and the tech industry amid an intensifying U.S. trade war. The NPC's policy announcements included AI model application support and special measures to stimulate consumption.

China and Hong Kong's stock markets rose on Wednesday following Beijing's announcement of ambitious economic goals and promises of bolstered domestic consumption and tech sector support. As the trade war with the United States intensifies, the blue-chip CSI300 Index and the Shanghai Composite each increased by 0.3% at midday.

Hong Kong's Hang Seng Index surged 1.7%, while the Hang Seng Tech Index increased by 1.9%. Chinese policymakers unveiled a 2025 growth target of about 5%, with a deficit-to-GDP ratio of 4% and an inflation objective of 2%. The announcements coincide with the start of the National People's Congress annual meeting.

The government emphasized the importance of large-scale AI models, marking their first inclusion in a government work report. A special action plan was introduced to boost consumption, with 300 billion yuan earmarked to expand consumer subsidies, aiming to counterbalance the effects of rising U.S. tariffs.

(With inputs from agencies.)