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US Listed Chinese Stocks Jump On China's Stimulus Measures, Looser Monetary Policy Assurances
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US Listed Chinese Stocks Jump On China's Stimulus Measures, Looser Monetary Policy Assurances
Dec 9, 2024 7:05 AM

On Monday, U.S.-listed Chinese stocks like Alibaba Group Holding ( BABA ). JD.com, Inc. ( JD ) Baidu, Inc. NIO Inc.Li Auto Inc. and XPeng Inc.  maintained their upward trajectory ahead of a key policy meeting this week.

China reportedly plans to host its annual economic planning meeting, at which it will discuss its financial goals and additional stimulus measures.

On Monday, President Xi Jinping led Politburo promised “more proactive” fiscal measures and “moderately” looser monetary policy in 2025 to boost domestic consumption, CNBC cites from a key policy meeting.

Also Read: AI Startup iGenius Taps Nvidia For AI Data Center In Italy Leveraging Blackwell Chips

The Politburo, a top decision-making body led by President Xi Jinping, expressed commitment to the property and stock markets. The annual Central Economic Work Conference is reportedly due between December 11 and 12.

The top policymakers usually review economic performance and policy implementation in the current year and discuss its growth target and budget for 2025 in the annual event.

President-elect Donald Trump’s threats of U.S. tariffs on China have sent shockwaves across the nation, which is already grappling with the Biden administration’s semiconductor sanctions, which have prohibited China’s access to advanced artificial intelligence technology.

Zhaopeng Xing of Australia & New Zealand Banking Group told Bloomberg that he expects substantial fiscal expansion and significant rate cuts after the Politburo statement.

Bruce Pang of Greater China at Jones Lang LaSalle told Bloomberg it expects additional policy tools to significantly improve volume, quality, and effect, raising the chances of China setting the GDP growth target at ~5%.

Investors can gain exposure to the Chinese equity market and Chinese software and information technology stocks through iShares China Large-Cap ETF ( FXI ) and KraneShares Trust KraneShares CSI China Internet ETF .

Price Actions: At the last check on Monday, BABA stock is up 8.23% to $93. JD is up 12.60%, BIDU is up 7.59%, NIO is up 12.70%, LI is up 9.41%, and XPEV is up 13.40%.

Also Read:

Nvidia Could Become Taiwan Semi’s Third US Plant Customer, But With A Catch

Image via Shutterstock

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