On Friday, Chinese stock markets experienced a significant boost. The Shanghai Composite Index increased by 0.93% to reach 3,326 points, while the Shenzhen Component Index increased by 1.72% to 10,612 points—the highest levels for both in a week.
Chinese Policy Meetings Spark Investor Optimism
This upward trend is largely due to investors anticipating that the Chinese government will introduce new measures to stimulate the economy during important policy meetings in December. Specifically, attention is focused on the early December Politburo meeting and the mid-December Central Economic Work Conference for potential policy announcements.
Additionally, markets are awaiting the release of China’s Purchasing Managers’ Index (PMI) data over the weekend, which is expected to indicate improved economic activity. Despite this optimism, there are still concerns about the possibility of new trade tariffs from the United States, which could impact future market performance.
Market Rally Boosted by Rising Technology Stocks
Technology stocks, known for their rapid growth, led the market rally. Notable gains were seen in companies like Hithink RoyalFlush, which rose by 9.7%; Dawning Information, which increased by 3.7%; and Shenzhen Ysstech, which jumped by 20%.
Despite a volatile trading period in November, the Shanghai and Shenzhen indexes posted gains of 1.42% and 0.19%, respectively.