Chinese stocks are close to achieving the first annual profit since the pandemic

Chinese stocks are close to achieving their first annual height since the pandemic, and there may be other profits waiting for them as Beijing offers more procedures for growth support. The CSI 300 standard (CSI 300) has risen by about 17% since the end of 2023, a series of unprecedented losses that lasted three years. The Chinese shares listed in Hong Kong jumped 27% to go to its largest annual increase since 2009. And by comparison, the MSCI Asia -Pacific index increased by only 8% in 2024. The positive numbers indicate that things are ultimately on their way to the shares of China after years of poor performance against its local peers, which have changed some of its biggest fans in skeptics. Optimism is increasing after a long -term cycle of start and stop, as Beijing has launched policies to revive the economy in a campaign that is the most daring in decades. “There is still an excellent way to continue to improve Chinese stock evaluations in 2025, as the policy set in September is clear and appropriate,” said Chao Zhong Hua, the most important investment manager at “Shandong Camel Asset Management”. He added: “It will attract flow of government funds and from individuals next year, even if the implementation is some difference or delay compared to the market expectations.” Strategists at Bank of America, with the quote from the global data, said investors allocated about $ 5.6 billion to Chinese equity funds during the week ended December 11, the largest flow in nine weeks. Local investors created 6.8 million accounts for local stock trading in October, the biggest monthly number since June 2015, according to the “Bloomberg” dates issued by the Shanghai Stock Exchange. The number decreased in half in November. An important role for motivation This shift has long been caused after the previous gradual approach to Beijing was aimed at increasing growth due to short attacks of the stock market recovery. The CII 300 has jumped by more than 20% since the end of September, when the authorities presented a wide package of procedures, which included interest rate cuts, greater incentives to buy homes, and cash tools to support stock purchases. The profits crystallized when the Political Bureau of the Communist Party of China promised this December to accept the position of “somewhat soft” on monetary policy, the first transformation of its kind in 14 years, and the office promised to strengthen financial measures for the following year. Nevertheless, there are still some signs of caution in the market. Chinese investors’ appetite for joint investment funds focusing on stocks in December has fallen with the renewed acquisition of bonds. Although the total amount raised by stock products exceeded the total fixed income investments, the debt funds grew rapidly, which recorded the largest monthly number for this year so far. To maintain momentum in shares, China must still address some of the rooted issues in terms of investors, including the decline in the real estate market, the poor consumer confidence and the price reduction. Now all attention is at the annual meeting of the National Popular Conference next March, as Beijing will have another opportunity to persuade investors with more detailed growth policies.