(Bloomberg) — Chinese shares look poised to enter the bull market, after authorities rolled out fresh property easing steps as part of a stimulus package unveiled last week.
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The benchmark CSI 300 Index rose as much as 6.2% in early Monday trading, the most since 2015 and taking its gains to over 20% from a low on Sept. 13. A guage of developers tracked by Bloomberg Intelligence surged by 11%.
The extended rally came after three of China’s largest cities relaxed rules for homebuyers, while the central bank also moved to lower mortgage rates. The latest measures were among the key elements of a sweeping stimulus package released Tuesday that also included interest rate cuts, freeing-up of cash for banks, as well as liquidity support for the stock market.
“Under the current bolder easing mode, we expect more concrete demand-side stimulus measures in coming weeks or months,” Goldman Sachs Group Inc. analysts including Lisheng Wang wrote in a note. “And we will be watching for potential ad hoc meetings by those including the Ministry of Finance.”
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