China's stock market experienced its most significant single-day surge in over 15 years, rising nearly 9% as the government ramps up efforts to combat declining economic growth. This strong market response highlights investor optimism following a series of aggressive policy measures aimed at revitalising the economy.
Photo: Dreamstime.
Economic indicators have pointed to a troubling decline in China over the past year, prompting policymakers to act decisively. Goldman Sachs economist Lisheng Wang noted that the persistent economic weakness has reached a tipping point, triggering substantial policy interventions.
Recent measures include the removal of homebuying restrictions in major cities, interest rate cuts by the central bank, and the introduction of new funds to bolster the stock market. Additionally, mortgage down payment requirements have been lowered, and local governments are expected to provide one-time payments to low-income citizens.
These stimulus actions aim to tackle waning consumer demand, deflationary pressures, and challenges in the property sector, which has faced significant downturns. While the immediate market response has been positive, questions remain about the long-term effectiveness of these measures in sustaining economic recovery.
Source: www.axios.com