Chinese stocks soared on Tuesday, with the Shanghai Composite climbing 2.32% to close at 3,387 and the Shenzhen Component rising 3.22% to 11,007, reaching their highest levels in nearly four weeks.
Chinese stocks surge on positive economic outlook
An improving macroeconomic outlook in China fueled this rally. Premier Li Qiang expressed optimism about the country meeting its GDP target for the year and achieving future economic objectives, following a series of fiscal and monetary stimulus measures from Beijing. Li's remarks came during the ongoing National People’s Congress, where authorities are anticipated to reveal more details on additional fiscal stimulus plans.
China's business activity reaches four-month high in October
Additionally, a private survey indicated that business activity in China hit a four-month high in October, driven by a rebound in factory activity and accelerated growth in the services sector. High-growth sectors such as technology, automotive, and securities led the upward momentum, with significant gains from East Money (10.4%), Series Group (10%), and Citic Securities (4.9%).
