Bloomberg reports that the rebound in Chinese stocks has accelerated amid speculation that a key economic meeting expected in December could lead to new stimulus.
China’s CSI 300 index closed 1.7% higher, posting its biggest gain in three weeks. Technology stocks gained the most. The risk-on sentiment was also evident in Hong Kong, where the Chinese equity index rose by 2.6%.
The sudden rebound confused some market observers, especially as the rise came amid Donald Trump’s threats to impose additional tariffs and cabinet appointments that emphasized his trade agenda.
Investors drew attention to a screenshot circulating in online chat groups showing that the Central Economic Work Conference will occur earlier than expected and set the 2025 budget deficit target higher than usual.
Some expect Beijing to increase political support to offset potential economic risks associated with the newly elected US president’s policies.