Nanjing Road, Shanghai, China Photographer: Alamy Stock PhotoGood morning, and welcome to our rolling coverage of the world economy, financial…
Nanjing Road, Shanghai, China Photographer: Alamy Stock Photo
Good morning, and welcome to our rolling coverage of the world economy, financial markets, euro area and business.
2018 has been a terrible year for China’s investors, but maybe things start to look.
The Chinese stock market has risen by just over 4% today, on the right track after its best day since 2015, after President Xi Jinping promised “insignificant” support for the country’s private sector.
In a clear clue that Beijing will do more to protect China’s economy, Xi insisted that his government was behind the business leaders.
In a letter to private entrepreneurs, the Communist leader promised:
“All words and practices that neglect and weaken the private economy are incorrect.
Supporting the development of private companies is the party’s central committee’s consistent policy.
Other Chinese officials have also made supportive sound.
On Saturday, Deputy Prime Minister Liu He held a meeting with senior officials to discuss financial stability before the trade war with America. He later said that China must move faster to take action to encourage sound economic development.
These comments are seen as evidence that China could facilitate fiscal policy and reduce tax to support its economy after seeing growth slow at its lowest price last week .
Chinese investors have come to action and run with the CSI300 index on blue chip with over 4.3% in late trading. Shanghai Composite Index is up 4%, on track for its best day since March 2016.
Chinese stocks as rallies hard as Beijing’s verbal support reflects the markets:
China H-shares + 3.1%
Hang Seng + 2.2%
Shanghai Composite + 4.1%
CSI 300 4.4%
ChiNext Index + 5.7% pic.twitter.com/au8lCum3G9
Other Asia Pacific markets are also gathering hopes that a major Chinese stimulus package would support growth in the region.