The shift in monetary stance is a first since 2011, which could potentially hint at further rate cuts and targeted fiscal injections, adds Yeap in a Dec 10 note.
Chinese equities surged on Dec 9, with the bullish momentum set to possibly continue given the “limited window” for the Chinese market to react following the 24-man Politburo meeting led by President Xi Jinping, notes Yeap Jun Rong, market strategist at IG.
With another fresh round of verbal reassurances from China authorities at the meeting, policymakers have kept the market’s hopes high for an aggressive policy stimulus to arrive next year, with “more proactive” fiscal measures and a “moderately” looser monetary policy to boost domestic consumption, writes Yeap, citing Politburo meeting notes.
