Chinese Stocks Surge Amid Trade Talks and Economic Stimulus
Chinese and Hong Kong stocks reached a one-month high as economic stimulus and rate cuts by Beijing eased trade concerns. The blue-chip CSI300 Index and Hang Seng Index saw notable gains. In response, Goldman Sachs adjusted its index target upward amid expectations of reduced U.S. tariffs on Chinese imports.
In a development that has energized investors, Chinese and Hong Kong stocks soared to a one-month high by Thursday, driven by recent economic measures and the prospect of improved trade relations.
The blue-chip CSI300 Index in China rose by 0.6%, with the Shanghai Composite Index gaining 0.3%. Hong Kong's Hang Seng Index climbed 0.4%, marking a six-day rally that has signaled growing market confidence. Beijing's decisions to cut the policy rate and ease bank reserve requirements were pivotal in stabilizing market conditions.
Goldman Sachs has taken notice, revising its 12-month target for the CSI300 Index to 4,400 points. U.S. and Chinese officials are set to meet in Switzerland, fostering optimism for future economic negotiations. Meanwhile, tech stocks received a boost following Beijing's pledge of support for the sector. Despite these positives, analysts caution that market volatility could persist due to ongoing trade tensions.
(With inputs from agencies.)
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