Shanghai stocks gain after stimulus briefing as markets rally

HONG KONG: Shanghai stocks rose on Monday as traders digested a pledge by China’s finance minister to provide more help for the country’s struggling economy, while most other markets tracked another record day on Wall Street.

While a much-anticipated briefing on Saturday failed to deliver a hoped-for overall figure on stimulus, Lan Fo’an did set out plans to boost the beleaguered property sector, ramp up borrowing and work to get banks lending more.

Lan said the government would issue special bonds and that it had $325 billion in funds raised that it could deploy in the next three months to achieve its goals.The announcement came at the end of a volatile week for traders, who were left disappointed by a news conference on Tuesday that lacked any new support and barely any detail on a raft of measures unveiled in late September.

The news out of Beijing came a day before data showed Chinese inflation slowed more than expected in September, highlighting the uphill task leaders have in getting the world´s number two economy back on track.

Authorities have come under increasing pressure this year to deploy a ‘bazooka’ stimulus as a crisis in the real estate sector shows no signs of easing and consumption remains torpid.Traders elsewhere in Asia also welcomed another record for the Dow and S&P 500 in New York, cheered by healthy earnings from banking titan JPMorgan Chase, which said the US economy would likely avoid tipping into recession. “Significant measures for resolving local government debt and supporting the struggling property sector were mentioned,” analysts at HSBC Global Research said in a note.

“These are much needed for sustainable growth. We expect more details and the crucial fiscal number to be unveiled later this month at the State Council and/or the NPC Standing Committee meeting.”