On Friday, Chinese assets surged sharply, with A-shares experiencing a "violent" surge starting from 10:30 am. As of the close, the Shanghai Composite Index rose 1.05% in volume, the Shenzhen Component Index rose 1.47%, and the ChiNext Index rose 2.05%.
A total of 3635 stocks in the market rose, 134 stocks hit the limit up, and 1649 stocks fell.
The Hong Kong stock market also saw a significant increase. The three major indexes rebounded collectively, with the Hang Seng Index rising 1.7% and the Hang Seng Technology Index rising over 2%!
FTSE China A50 Index futures surged sharply, up over 1.5%!
However, the Asia Pacific market has generally declined. The Nikkei index fell 0.77%, and the South Korean stock market fell 0.57%.
Insurance stocks continue to be strong!
Sora concept exploded!
There are several reasons behind why Chinese assets have risen sharply against the trend.
Firstly, the market has increased its bets on stronger economic stimulus measures, and investors are preparing for new economic support measures that may be introduced at important conferences.
Secondly, major foreign banks have raised the intensity of China's economic stimulus for 2025. Goldman Sachs believes that fiscal stimulus needs to play a major role in driving demand next year, but lower interest rates are also necessary. To cope with domestic demand and pressure from the United States, significant macro easing policies, including monetary policy easing, are needed.
Previously, Dongwu Securities released its 2025 A-share investment strategy outlook, stating that next year will be a fiscal year and incremental policies are expected to continue to increase.