The Shanghai Composite Index rose 0.4% on Wednesday, while the Shanghai Shenzhen CSI 300 Index rose 0.2%. The Hang Seng Index in Hong Kong jumped 0.8%. The three indices recorded sharp gains earlier this week.
The focus was on the China Central Economic Work Conference (CEWC), a two-day meeting starting later in the day. The meeting comes after China’s Politburo gave its most pessimistic signals yet on plans to launch more stimulus and support growth.
China’s government has indicated that it will implement more proactive fiscal stimulus measures and adopt moderately looser monetary policies in 2025, according to a readout of a Politburo meeting chaired by President Xi Jinping.
An impending increase in US tariffs on imports could significantly impact China’s economy, potentially cutting GDP by 1.5% over the next few years, analysts from ANZ said in a recent note.
Broader Asian markets were slightly higher.
Indonesia’s Jakarta Stock Exchange Composite Index rose 0.5%, while India’s Nifty 50 futures pointed slightly higher at the open.
South Korea’s KOSPI continued its gains, rising 0.6%, regaining some of the ground lost on Monday and the previous week. South Korean President Yoon Suk-yul is under criminal investigation for rebellion following his controversial declaration of martial law earlier this month.
A range of government measures, including an injection of funds into the domestic market, have helped ease some concerns about the ongoing political crisis.
