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Chinese Shares Rebound on Plans to Raise Target Budget Deficit; Harbin Jiuzhou Group Jumps 11%
Wednesday, December 18, 2024       15:50 WIB

December 18, 2024 at 02:54 am EST
(MT Newswires) -- Chinese shares ended their three-day losing streak on Wednesday as investor appetite for equities rose amid plans to raise the country's target budget deficit to a record high in 2025 to counter higher US tariffs.
The Shanghai Composite Index, the main gauge of Chinese stocks, rose 0.6% to 3,382.21. The Shenzhen Component Index climbed 0.4% to 10,584.27.
Chinese leaders are planning to raise the budget deficit to 4% of gross domestic product in 2025 from the target of 3% of GDP for 2024, with the additional percentage point amounting to about 1.3 trillion yuan, Reuters reported.
Meanwhile, Fitch Ratings maintained its view of increased policy support for the Chinese economy in 2025, following the government's announced shift to a "moderately loose" monetary policy stance and a "more proactive" fiscal policy.
The rating agency said the changes could lead to additional interest rate cuts above the 25 basis points currently projected for 2025.
In company news, Harbin Jiuzhou Group (SHE:300040) said its Daqing wind power project was included in the 2024 subsidy list for renewable energy power generation. Shares of the power transmission and conversion equipment maker closed 11% higher Wednesday.

Sumber : MT Newswires

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