China and Hong Kong Stock Surge Amid Promised Policy Stimulus

China and Hong Kong stocks experienced a significant surge following assurances of increased policy stimulus from top policymakers. Both the CSI300 and Hang Seng indices saw notable gains, driven by expectations of relaxed monetary and proactive fiscal policies aimed at boosting economic growth.

China and Hong Kong stocks opened with substantial gains on Tuesday as top policymakers pledged to increase policy stimulus to encourage economic growth. The blue-chip CSI300 index surged by 3.2% at the start, with the Shanghai Composite index rising by 2.6%.

Hong Kong's Hang Seng benchmark saw a 3.2% jump at open, following a 2.8% increase on Monday, while the tech index climbed 4.2%. According to state media Xinhua, China plans to employ an 'appropriately loose' monetary policy next year, marking the first significant easing in 14 years, complemented by a proactive fiscal policy aimed at fostering growth.

The report highlighted that authorities will implement 'unconventional' counter-cyclical measures, focusing on domestic demand and consumption. Nomura economists noted the strong policy emphasized Beijing's commitment to stabilizing growth, with potential steps including increased fiscal spending in the coming year.

(With inputs from agencies.)