23.01.202602:37:06UTC+00China Stocks Gain on Stimulus Hopes

The Shanghai Composite Index experienced a modest rise, gaining 0.2% to surpass the 4,130 mark, while the Shenzhen Component increased slightly by 0.1% to reach 14,340 on Friday. Both indices are poised to conclude the week on a positive note, buoyed by expectations of new policy measures. China's central bank has indicated its intention to sustain a moderately loose monetary policy stance into 2026, employing strategies such as reductions in the reserve requirement ratio and interest rate cuts to maintain sufficient liquidity. Additionally, investors are anticipating fiscal stimuli as the Chinese government grapples with deflationary trends, subdued consumer demand, and a beleaguered property market. Leading the market's advances were stocks in the aerospace and clean energy sectors, with notable performers being China Aerospace, which gained 6.6%, China Spacesat with a 5.3% rise, Goldwind Science & Technology advancing by 8.2%, and Sungrow Power up 1.2%. The local stock market also received an uplift from Wall Street, following US President Donald Trump's decision to retract proposed tariffs on European nations, along with the announcement of a preliminary agreement with NATO concerning a prospective future deal involving Greenland.