China Stocks Surge as Rare Earth and Construction Lead Gains
China's stocks increased, driven by rare earth and construction sectors. The Shanghai Composite Index rose to its highest since October, while the Hang Seng Index in Hong Kong grew following tech stock gains. Factors include China's hydropower projects, rare earth quotas, and anti-price war policies.
In a remarkable display of market growth, China's stock markets surged to multi-month highs on Monday, with the rare earth and construction sectors taking the lead. The Shanghai Composite Index rose by 0.4% to 3,549.89, marking its highest point since last October. Meanwhile, Hong Kong's Hang Seng Index gained 0.3%, fueled by the tech sector's rally.
Key drivers behind this upsurge include the launch of a $170 billion hydropower dam in Tibet and China's newly issued 2025 rare earth mining and smelting quotas. These developments, along with the government's rebuke on tech price wars, injected fresh optimism into the market.
With anti-involution policies and a solid economic foundation boosting investor sentiment, attention now turns to the upcoming Politburo meeting, where policymakers are expected to focus on domestic demand, exports, employment, and property market stabilization rather than broad stimulus measures.
(With inputs from agencies.)
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