Tenyear yield falls to record low
Hang Seng jumps to 1 month high
SHANGHAIHONG KONG, Dec 9 Reuters Stocks jumped and China39;s government bonds rallied after the Politburo shifted its monetary policy stance to imply more easing is coming, mirroring moves made in previous crises.
Benchmark 10year yields fell about four basis points to 1.922, a record low. Hong Kong39;s Hang Seng index jumped 2.8 to its highest in a month.
China39;s growth has stalled as a collapse in the property market crushed confidence and consumption and investors have been eager to bet that the government will ride to the rescue.
China will adopt a moderately loose monetary policy, according to an official readout from a meeting of top Communist Party officials, a shift from prudent and one it last made in 2010 to support a recovery from the global financial crisis.
It will also stabilise stock and property markets and must vigorously boost consumption and expand domestic demand in all directions, Xinhua cited the Politburo as saying, remarks directly addressing investors39; main concerns.
It gives high hope for more monetary support to come, including outright interest rate cuts, said Frances Cheung, head of Asia rates and currency strategy at OCBC in Singapore.
The Hang Seng index jumped above the eyecatching 20,000 level after the announcements, while moodsensitive tech shares surged 4.3. There were sharp gainers in sectors from banking to property and consumer companies and volumes…