China economy hopes boost global equities

FE Team | Published: September 26, 2024 23:54:37

LONDON, Sept 26 (AFP): Chinese stocks surged and major European indices mostly rallied Thursday as China signalled further stimulus measures aimed at lifting the world's second-biggest economy out of the doldrums.
Hong Kong closed up 4.2 per cent and Shanghai finished with a gain of 3.6 per cent, extending the week's strong gains as a slew of bold measures from Beijing suggested leaders were listening to calls to reinvigorate growth.
On Thursday, China's President Xi Jinping admitted that the country was facing new economic "problems" and pledged to ramp up employment and fix its troubled property sector.
"After months of market anticipation, the Chinese authorities are finally acknowledging the significant amount of work needed to relaunch the world's second-largest economy," said market strategist Patrick Munnelly at traders Tickmill Group.
Bloomberg reported Chinese leaders were also considering pumping more than $140 billion into its large state-run banks.
The Paris stock market led the way in Europe, gaining 1.5 per cent nearing the half-way mark. Luxury fashion stocks topped the CAC 40, boosted by hopes of rebounding demand from China.
Shares in Gucci-owner Kering jumped eight per cent, while LVMH and Hermes won seven per cent.
London's FTSE 100 index rose by only 0.2 per cent, with gains capped by heavy losses to energy majors BP and Shell.