China’s stock markets saw modest gains on Monday, with property shares benefiting from fresh government stimulus promises. Despite the boost, investor enthusiasm remained muted, reflecting ongoing uncertainty in tech stocks and broader economic conditions.
The Shanghai Composite gained 0.2%, while the CSI300 climbed 0.4%, lifted by optimism in the property sector. In contrast, Hong Kong’s Hang Seng Index dropped 1%, as tech shares, often considered a market sentiment indicator, experienced a downturn. The yuan also weakened, trading at 7.0795 per dollar.
Finance Minister Lan Foan reiterated the government’s commitment to increasing debt to support economic growth, but investors were left seeking more clarity on the specifics of the stimulus. Goldman Sachs estimated that the measures could add 0.4 percentage points to China’s growth next year, raising its 2025 GDP forecast from 4.3% to 4.7%.
While property shares saw gains, broader market concerns over tech stocks and commodity prices, along with a weaker Australian dollar, highlighted the continued economic uncertainty.
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