Read more about Chinese stocks jump as Beijing signals more economic support on Business Standard. Consumer shares led gains, with Kweichow Moutai Co. and Wuliangye Yibin Co. adding at least 4.5%. In Hong Kong, the Hang Seng Index gained 1.1%.
Chinese equities rallied by the most in ten weeks as traders turned buyers of everything from baijiu producers to construction firms on expectations of increased support for the The benchmark CSI 300 Index rose 2.6%, its best day since May 25. Consumer shares led gains, with Kweichow Moutai Co. and Wuliangye Yibin Co. adding at least 4.5%. In Hong Kong, the Hang Seng Index gained 1.1%. Monday’s move higher follows a much-watched Politburo meeting Friday, which was seen to indicate that authorities will likely take more steps to help struggling small businesses, boost fiscal spending and possibly reduce the reserve requirement ratio for banks again. Bets on further easing boosted Chinese sovereign bonds. “Some investors are buying dips thinking most of the bad news on regulations is behind them,” said Margaret Yang, a strategist at DailyFX in Singapore.
