FX.co ★ China Stocks Jump on Fresh Policy Support

The Shanghai Composite Index advanced by 1.04%, closing at 3,456 on Wednesday, while the Shenzhen Component Index saw an increase of 1.72%, reaching 10,394. This marks the third consecutive session of growth, driven by new policy measures from Beijing that bolstered market sentiment. The Chinese authorities have introduced draft guidelines aimed at stimulating consumption and supporting the broader economy. These proposals include provisions for eligible companies in the consumer sector to secure funding through initial public offerings (IPOs), bonds, and alternative channels. Furthermore, financial institutions have been encouraged to improve service provision, innovate credit product offerings, and enhance risk management practices to better cater to a diverse range of consumer financing needs. Geopolitical conditions also saw improvement, as a ceasefire brokered by the United States between Iran and Israel seems to be holding, with only minor disturbances reported. Additionally, reports indicate that former President Trump has permitted China to continue purchasing oil from Iran, alleviating some concerns related to energy. Among the top performers were East Money, which surged by 10%, Hithink Royalflush with a 14.5% increase, and Gotion High-Tech, which rose by 8.2%.