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Goldman Sachs upgrades its growth forecast for China’s economy for 2024 and 2025 amid the Chinese central bank’s stimulus efforts. Following the latest update on stimulus policy, the CSI 300 Index (000300.SS) closed up nearly 2%. Morning Brief Hosts Seana Smith and Brad Smith break down what investors need to know.
To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
This post was written by Naomi Buchanan.
Now time for some of today's trending tickers. Scan the QR code below to track the best and worst performing stocks of the session with Yahoo finances trending tickers page. Well, first up, we've got China's CSI 300, closing nearly 2% higher. This after the latest round of Beijing stimulus. Plus, you've got Goldman Sachs upgrading its forecasts for China's economic growth plan in 2024 here and 2025, citing policymakers increased focus on the economy. Uh, just to put some numbers on that, that also in addition to the GDP expectations they are looking for expansion of 4.9% this year in 2024. That was previously 4.7%, and then also expecting an approval for 142 billion to 283 billion dollars worth of ultra long central government bond quotes by the end of 2024.
Yeah, I think the big question now for investors is what exactly this means for future momentum. Certainly, and we can see it on the right hand side of this chart, these efforts here that we have gotten, the announcements that we've gotten over the last several weeks, has certainly changed the investment narrative surrounding China and opportunities within the Chinese market. But I think you as investors here this morning are asking themselves what exactly is necessary or is this enough to keep this momentum going forward. And we heard from the finance ministry over the weekend vowing greater fiscal support and that much anticipated brief that we heard on Saturday, but again, questions remain just at as is as to exactly what that will look like and what that ultimately is going to be here for this catalyst going forward. But again, Goldman saying that the latest round of Chinese stimulus clearly indicates that policymakers have made a return to cyclical policy management, increased their focus on the economy. So that was enough here to at least make them a little bit more bullish, or a little bit more encouraged about the direction of the economy from here.
