Chinese stocks staged their biggest one day rally since November after a call by China’s leaders for strong “countercyclical” measures to support the world’s second-largest economy, despite what economists said was a lack of detail in Beijing’s plans.
President Xi Jinping’s 24-member politburo, the Communist party’s leading decision-making body, flagged the highly indebted property sector and local governments, as well as lagging domestic demand, at its quarterly meeting on the economy on Monday.
Property stocks in particular soared on Tuesday. But while the overall message was supportive, economists said it provided few details and no sign of the kind of “big bang” stimulus China has implemented in the past. China’s post-Covid recovery lost steam in the second quarter, with growth missing analysts’ expectations.