On Monday, the Shanghai Composite index increased by 0.4%, reaching approximately 3,980, thereby extending its winning streak to nine consecutive sessions—its longest stretch since April. Concurrently, the Shenzhen Component rose by 0.3% to attain a two-month peak of 13,640. This positive movement came in response to Beijing's announcement regarding plans to augment fiscal spending aimed at bolstering both consumption and investment. Additionally, the upbeat global equities climate contributed to a positive sentiment as we approach the final trading week of the year.
The Chinese Ministry of Finance has outlined a strategy focused on fortifying the domestic market by enhancing consumer demand and making targeted investments in public services, as discussed in a recent two-day national fiscal work conference. Investor confidence has also been buoyed by a year-end "Santa Claus rally," where global and US equities approach record highs—a trend that frequently influences the stock market's performance as we enter the new year.
Among the noteworthy gainers were Cambricon Technologies, which saw an increase of 7.2%, Foxconn Industrial rising by 3.7%, PetroChina gaining 2.2%, China Construction Bank with a 1.2% rise, and China Shenhua Energy advancing by 0.9%.
