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Global Stock Rally Driven by Chinese Rebound

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China’s Markets Soar

Hong Kong’s Hang Seng Index saw a remarkable jump of 2.4%, while the Shanghai Composite rose by 1.4%. Property developer Country Garden’s shares skyrocketed by 17% following a deal made with creditors to extend payments for an onshore private bond. Additionally, China’s largest tech giants, Alibaba and JD.com, experienced strong gains of 3.3% and 5% respectively.

Mortgage Rule Relaxation

Beijing and Shanghai have joined other cities in China by relaxing mortgage rules. This change allows first-home buyers to benefit from preferential loans, regardless of their credit records.

Positive Market Performance in Europe

In early trading, the pan-European Stoxx 600 Index showed a climb of 0.7%. Germany’s DAX increased by 0.6%, France’s CAC was up by 0.9%, and the U.K.’s FTSE 100 rose by 0.6%.

Additional Stimulus Expected

Goldman Sachs analyst Hui Shan stated in a recent note that China’s efforts to support the property sector, along with other initiatives like the People’s Bank of China’s support for the yuan, suggest further stimulus measures in the future. Shan believes these actions send a clear message that policymakers aim to stabilize the property market, boost economic growth, and enhance investor sentiment. She expects additional incremental measures to be introduced until policymakers are satisfied with the outcome.

FTSE 100 Rises with China Exposure

In the early hours of Monday trading, companies in the FTSE 100 with significant exposure to China experienced substantial gains. Miners such as Glencore, Anglo American, and Rio Tinto, as well as luxury fashion house Burberry, all saw their shares rise between 1.5% and 2%.

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