China stocks rise slightly as traders await clarity on stimulus policies amid holiday week

The CSI 300 Index, which tracks 300 of the largest stocks in Shanghai and Shenzhen, rose 0.1 per cent to 3,987.48 at the close. The gauge rose 1.5 per cent over the past three days. Christmas is not a public holiday in China.

The Shanghai Composite Index also gained 0.1 per cent. Technology and telecoms firms emerged as the best performers among the 10 industrial groups in the CSI 300, while utilities and energy stocks underperformed.

Chinese stocks have been rangebound over the past two months, as traders have been waiting for the effective implementation of the government’s stimulus measures. Investors expect Beijing to deliver more interest-rate cuts and raise the government borrowing limit next year to spur growth after a shift in policy from Beijing’s top officials.

The People’s Bank of China refrained from cutting borrowing costs on Wednesday, leading analysts to believe it is refraining from using its policy tools until later to deal with the economic impact of the Trump administration. Economic data from November showed China’s uneven recovery continued, with consumer spending languishing and producer-price deflation lingering.

“Despite previous attempts at stimulation through monetary easing and liquidity boosts, the results have been underwhelming,” said Stephen Innes, managing director of SPI Asset Management in Bangkok. “With deflation fears nipping at its heels, Beijing is poised to act decisively.”