摘要：TMTPOST -- The Nasdaq Golden Dragon China Index, which tracks 65 China-exposed U.S.-listed companies, closed 4% higher at 8,404.02
TMTPOST -- The Nasdaq Golden Dragon China Index, which tracks 65 China-exposed U.S.-listed companies, closed 4% higher at 8,404.02, outperforming the U.S. stock market benchmark S&P 500 that advanced 0.64% on Monday. The index hit its highest close since February 2022 after China unveiled a comprehensive initiative to shore up consumption.
Credit：Freepik
The American depositary receipts (ADRs) of China’s top search engine operator Baidu jumped 9%. ADRs of Alibaba Group, the most valuable Chinese firm listed in U.S., gained 4.6%, and two domestic peers --Temu parent PDD Holdings Inc. and JD.com rose 5.2% and 4.8%, respectively. China’s leading beauty group Yatsen Holding Ltd, soared 12%. The video platform Bilibili gained 3.9%. Shares of Niu Technologies, an electric scooter maker, surged 29%. Shares of Tesla’s Chinese rivals -- Xpeng and Nio popped 3.5% and 2.7%, respectively, while Li Auto down 0.4%.
Exchange-trade funds (ETFs) tracking the investment in Chinese equities also climbed. The Invesco China Technology ETF, the KraneShares CSI China Internet ETF and the Roundhill China Dragons ETF climbed between 1.7% and 4.2%.
Chinese stocks rallied after Beijing on Sunday released a plan on special initiatives to increase consumption. The plan aims to vigorously boost consumption, stimulate domestic demand across the board, and increase spending power by raising earnings and reducing financial burdens, reported the state news agency Xinhua.
The plan, composed of 30 policies across eight sections, includes demand-side initiatives such as income enhancement for urban and rural residents, and measures to support consumption capacities.On the supply side, actions are aimed at improving the quality of services consumption, upgrading bulk consumption and enhancing consumption quality.
Previous consumption policies focused primarily on the supply side, emphasizing that supply drives demand creation, while the latest policies also prioritize the demand side, aiming to boost household incomes and ease financial burdens, noted Li Chunlin, deputy director of the National Development and Reform Commission (NDRC), at a press conference on Monday.
Li cited measures such as those related to reasonable wage growth and scientifically adjusted minimum wages, both of which are highlighted in the consumption support plan. The plan is the first central government’s document to stimulate consumption that underscores the stabilization of the stock market and the property market, said Li.
To enhance property incomes, the plan calls for a multifaceted approach, including the stabilization of the stock market, strengthened strategic reserves and market stabilization mechanisms, and the accelerated removal of barriers preventing long-term funds -- such as commercial insurance funds, the national social security fund and the basic pension insurance fund -- from entering the market.
As outlined in the plan, fiscal, financial, industrial, and investment policies must align with the goal of promoting consumption. This includes substantial capital injections such as project investments, fiscal funds, union budgets, and consumption assistance programs, as well as policy support including macro-policy alignment assessments, financial credit mechanisms, statistical system reforms, and the protection of rest and paid leave rights, Li noted.
Besides NIDC, officials at five other departments also detailed the deployment of the related policies at the press. The State Administration for Market Regulation (SAMR), the market regulator, said it will cooperate with other departments to create a safe consumption environment. The People’s Bank of China (PBOC), the central bank, will roll out specialized documents on financial support for expanding consumption, with measures including moderately loose monetary policy to create a favorable financial environment for expanding consumption.
The Ministry of Finance will strengthen health care, education, pension and employment protection. Following its "employment first" policy, the central government plans to allocate 66.74 billion yuan in employment subsidies in 2025 to support local employment and startup assistance programs. The Ministry of Human Resources and Social Security, it will focus on measures to implement employment support plans for key areas, key industries, urban and rural grassroots, and small and medium-sized enterprises. The Ministry of Commerce will promote the expansion of services consumption and cultivate the new growth point of auto consumption. Li said the National Health Commission is drawing up a specific plan to implement a child care susidy system.
Driven by innovation and supportive policy initiatives, China's consumer market is poised for steady growth this year, said Zou Yunhan, a researcher with the State Information Center, calling for collective efforts from all sectors to fully implement the action plan and ensure its effectiveness.
Though there are few new details on how the government will increase spending, the details of the plan show a greater determination to tackle China’s consumption problem this year, commented Lynn Song, chief economist for Greater China at ING Bank.
“Compared to previous plans focused solely on supply-side improvements or old-for-new policies, the plan also touches on the need to improve income,” Jefferies analysts including Anne Ling wrote in a note. “We believe the government is placing more focus on securing the welfare of lower-income groups.”
来源：钛媒体
