The Chinese stock market rebounded on September 29, recovering from previous losses, driven by expectations of stimulus measures. The Shanghai Composite Index closed up 0.18% at 3,830.45, the Shenzhen Component Index rose 0.34% to 12,901.95, and the ChiNext Index increased by 0.09% to 3,142.56.
On September 28, the State Council of China held a meeting to express a strong commitment to economic stimulus. The government announced plans to enhance counter-cyclical adjustments, improve the effectiveness of existing policies, implement additional stimulus measures, optimize fiscal spending, utilize monetary policy tools, expand re-lending for technological innovation and upgrades, research policies to stabilize the real estate market, and develop employment and income-boosting strategies. The state-run Xinhua News Agency interpreted this as a clear signal of policy strengthening, particularly noting the emphasis on stabilizing the real estate market.
Reuters reported that the State Council pledged to strengthen counter-cyclical policy support to alleviate economic pressures, resulting in a notable rise in real estate stocks, which helped lift the overall mainland stock market.
The battery sector showed strong performance on this day, with companies like Jinlongyu, Shanghai Xiba, and Yinglian Guofen hitting their daily price limits. This surge was fueled by the '15th Five-Year Plan for the Development of the New Battery Industry,' jointly announced by the Ministry of Industry and Information Technology and six other departments on September 28. The plan aims for the large-scale commercialization of solid-state batteries by 2030.
Real estate stocks also saw gains, with companies such as Xindadi Chuan and Shenwuye reaching their daily price limits. The announcement from the State Council regarding research into policies for stabilizing the real estate market contributed to the rise in related stock prices. Fangzheng Securities noted in a report that transactions of existing homes in 20 major cities have shown continuous improvement compared to the same period last year, recording a double-digit growth rate for four consecutive weeks, indicating that the real estate sector is entering a recovery phase.
Meanwhile, the People's Bank of China set the yuan's central parity rate against the dollar at 6.7411 yuan, an increase of 0.0012 yuan from the previous day, reflecting a 0.02% decline in the value of the yuan.
* This article has been translated by AI.
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