Chinese stocks remained flat as investors waited for a press conference where officials are expected to announce plans aimed at reviving consumer spending in the country. The benchmark CSI 300 Index was down 0.1% after a significant 2.4% rise on Friday, sparked by reports that authorities would hold a briefing on Monday regarding efforts to boost consumption. Meanwhile, a gauge of Chinese stocks listed in Hong Kong saw earlier gains trimmed but still remained up by 0.8%.
Rising Optimism on China’s Economic Policies
Optimism about China’s economic policies has been growing. According to a report from Xinhua News Agency, Beijing plans to promote “reasonable growth” in wages and introduce a mechanism to adjust the minimum salary. Other proposed measures include stabilizing the stock and property markets, as well as offering incentives to increase the birth rate, as stated by the State Council.
Consumption Measures Fall Short of Investor Expectations
Despite these steps, market strategist Jun Rong Yeap from IG Asia in Singapore suggested that the consumption measures, while positive, may not provide the immediate boost to consumer spending that some investors were hoping for. “There may be more stimulus options available, but authorities could be holding back for now due to uncertainties surrounding US trade policies,” Yeap noted.
Press Conference to Provide Further Insights
China’s finance ministry, commerce ministry, central bank, and other government bodies are set to hold a press conference at 3 p.m. Beijing time on Monday to outline their consumption-boosting measures.
Economic Data Offers Mixed Signals
Chinese stocks largely ignored the release of fresh economic data on Monday. While retail sales and industrial output both exceeded economists’ expectations, the unemployment rate rose from the end of last year. Despite this, the data showed some early signs of recovery in the economy.
Technology Sector Drives Chinese Stocks
Chinese stocks have outperformed global markets this year, bolstered by a rally in technology stocks, especially those related to the DeepSeek artificial intelligence model. The country’s stock market has also benefitted from optimism surrounding policy stimulus, particularly after the government set an annual economic growth target of around 5% at the National People’s Congress earlier this month.
The MSCI China Index has gained approximately 20% in 2025, while the S&P 500 Index has fallen by around 4%.
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