Chinese shares gain on economic growth targets and stimulus measures
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Chinese equities closed higher on Tuesday, driven by optimism surrounding the government's newly announced economic growth targets during the National People's Congress. The Shanghai Composite Index advanced 0.5%, gaining 17.75 points to close at 3,341.96, while the Shenzhen Component Index added 0.3%, or 30.02 points, finishing at 10,709.46.
Macroeconomic Policy & Market Sentiment
Premier Li Qiang’s announcement of a 5% GDP growth target for the year bolstered investor confidence, reinforcing expectations of sustained economic expansion. Additionally, Beijing outlined plans to issue 1.3 trillion yuan in ultra-long special treasury bonds, a fiscal stimulus initiative aimed at accelerating infrastructure development and investment.
The government also introduced key economic targets for 2025, including:
Deficit-to-GDP Ratio: Set at 4% to provide fiscal support for economic activities.
Urban Unemployment Rate: Targeted at 5.5% to maintain labor market stability.
Consumer Price Index (CPI) Growth: Projected at 2%, reflecting controlled inflation expectations.
Sector & Stock Performance
The positive market sentiment was reflected in the performance of several individual stocks:
Harbin Boshi Automation (002698): Gained 3.7% following the announcement of an 88.5 million yuan supply deal.
Jiangxi Lianchuang Optoelectronic Science and Technology (600363): Closed 3.5% higher amid plans to execute a share buyback worth up to 150 million yuan.
Jiangsu Gian Technology (300709): Climbed 4.4% after its auto parts subsidiary, Changzhou Ruidian Precision Technology, rebranded to Jiangsu Jingyan Intelligent Driving System.
With Beijing’s commitment to economic stabilization and targeted fiscal expansion, market participants will closely monitor the implementation of these policies and their impact on corporate earnings and investor sentiment in the coming months.
Macroeconomic Policy & Market Sentiment
Premier Li Qiang’s announcement of a 5% GDP growth target for the year bolstered investor confidence, reinforcing expectations of sustained economic expansion. Additionally, Beijing outlined plans to issue 1.3 trillion yuan in ultra-long special treasury bonds, a fiscal stimulus initiative aimed at accelerating infrastructure development and investment.
The government also introduced key economic targets for 2025, including:
Deficit-to-GDP Ratio: Set at 4% to provide fiscal support for economic activities.
Urban Unemployment Rate: Targeted at 5.5% to maintain labor market stability.
Consumer Price Index (CPI) Growth: Projected at 2%, reflecting controlled inflation expectations.
Sector & Stock Performance
The positive market sentiment was reflected in the performance of several individual stocks:
Harbin Boshi Automation (002698): Gained 3.7% following the announcement of an 88.5 million yuan supply deal.
Jiangxi Lianchuang Optoelectronic Science and Technology (600363): Closed 3.5% higher amid plans to execute a share buyback worth up to 150 million yuan.
Jiangsu Gian Technology (300709): Climbed 4.4% after its auto parts subsidiary, Changzhou Ruidian Precision Technology, rebranded to Jiangsu Jingyan Intelligent Driving System.
With Beijing’s commitment to economic stabilization and targeted fiscal expansion, market participants will closely monitor the implementation of these policies and their impact on corporate earnings and investor sentiment in the coming months.