Chinese stocks saw a significant rise on Wednesday, as the nation’s top leaders unveiled key economic targets at the opening of the annual parliamentary meetings, sparking optimism that further stimulus measures will be introduced.
Hong Kong-listed stocks surged, with a technology index climbing over 3%, while the broader market saw gains of up to 2.6%. The CSI 300 Index, which tracks onshore shares, showed mixed movements, reflecting investor sentiment.
The rally was fueled by investor hopes that China’s decision to maintain a 5% growth target for the third consecutive year, along with the highest fiscal deficit in over three decades, would signal more aggressive steps to stimulate demand. These moves are seen as crucial in tackling persistent deflationary pressures and the ongoing housing market challenges, especially as trade tensions with the U.S. escalate, with President Trump imposing an additional 10% tariff on Chinese goods.
“There’s little to criticize here. A clear growth target and strong intentions to support the economy,” said Vey-Sern Ling, Managing Director at Union Bancaire Privee. “This should be reassuring for markets.”
In his address to the National People’s Congress, Chinese Premier Li Qiang emphasized the nation’s commitment to advancing strategic emerging industries and scaling up the use of new technologies. “We will establish a mechanism to increase funding for future industries, including biomanufacturing, quantum technology, embodied AI, and 6G,” Li stated.
The technology sector saw notable gains, with shares in Chinese chipmakers, quantum computing, and robotics companies climbing sharply. Hua Hong Semiconductor Ltd. rose by as much as 7.1%, while robotics-related Jiangsu Hengli Hydraulic Co. surged 8.6%.
“The NPC report showed stronger-than-expected government backing for China’s technology sector, while economic targets largely aligned with expectations,” said Gary Tan, a Portfolio Manager at Allspring Global Investments. “This is beneficial for Hong Kong markets, which have higher exposure to tech stocks compared to mainland exchanges.”
Chinese stocks had faced downward pressure in recent weeks, as rising trade tensions overshadowed the excitement generated by breakthroughs in the country’s artificial intelligence sector.
Related topics:
Goldman Sachs CEO Predicts Minimal Risk of U.S. Recession
Canadian Dollar and Mexican Peso Hit One-Month Lows Amid US Tariff Concerns
U.S. Farmers to Receive First $10 Billion of $30 Billion Aid Package Amid Market Struggles
