Chinese government implements measures to boost property market, industrial production up, copper hits all-time high

From AOL: 2024-05-17 17:14:41

China’s government implements aggressive measures to boost struggling property market, including easing mortgage regulations and urging local governments to buy unsold homes. Support package includes reduced down-payment requirements for first-time and second-home buyers, as well as central bank funding to help government-backed firms acquire surplus inventory for affordable housing.

China’s finance ministry auctions special treasury bonds to kickstart stimulus program. Zhu Ning, finance professor, compares current measures to Great Financial Crisis bailout. Recent data shows China’s industrial production up 6.7% year-on-year in April, exceeding forecasts, while unemployment rate drops to 5.0%.

Chinese stocks and commodities rally following government’s measures. Shanghai and Shenzhen indices rise, with real estate developers seeing significant gains. Hang Seng Index hits nine and a half month high. Chinese ADRs slightly higher at U.S. market open. Copper surges to all-time high of $5 per pound.

Stocks and ADRs tied to China surge, with real estate developers and tech companies like Alibaba and PDD seeing gains. KraneShares CSI China Internet ETF rises to highest level since February 2023. Copper hits $5 per pound, reaching fresh all-time highs. Market sentiment remains positive following government support for property market and measures to stimulate economy.



Read more at AOL: Chinese Stocks Rally, Copper Hits All-Time Highs