China stocks jump on policy support hopes

Stocks in China rallied on Thursday as investors expect the Chinese government to prop up economic growth with new measures this month and ease policy further in 2019.

The Shanghai Composite index edged 1.23 percent higher at 2,634.05. The blue-chip CSI300 index also traded 1.55 percent higher at 3,219.69. The smaller Shenzhen index was up 1.43 percent and the start-up board ChiNext Composite index edged 0.73 percent higher.

China’s leaders are set to hold the Central Economic Work Conference, which typically takes place in December. Analysts forecast strong policy support to prop up growth.

“People have been focusing on the conference” in recent sessions, said Zhang Gang, a Shanghai-based analyst at Central Securities. The bullish sentiment grew as more and more analysts started laying out their expectations of what will happen at this economic conference.

Expectations are also high for further monetary easing, analysts at Guotai Junan Securities said in a memo on Thursday. They expected that there will be more room for policies like further cuts to the reserve requirement ratio.”

The largest percentage gainer in the main Shanghai Composite index was Sichuan Languang Development Co, up 10.09 percent. The largest percentage loss in the Shanghai index was Suzhou Jin Hong Shun Auto Parts Co, down 6.4 percent.