The X-trackers Harvest CSI 300 China A-Shares Fund (ASHR) surged nearly 7% in pre-market trading on Thursday, fueled by investor optimism following a series of measures announced by China's central bank aimed at supporting the country's equity markets and economy.
In a significant development, the People's Bank of China officially launched a new "Securities, Fund, and Insurance Swap Facility" designed to bolster the stock market. The central bank also urged key financial institutions to swiftly implement policies to support the economy and capital markets. Adding to the positive sentiment, China's central bank governor Yi Gang flagged the possibility of further interest rate cuts, a move that could stimulate economic growth and increase liquidity in the financial markets.
These actions come as Beijing unveiled its biggest stimulus package since the pandemic late last month, in an effort to revive the country's slowing economy. The boost to market sentiment was also reflected in a broader rally in Chinese stocks, with the blue-chip CSI 300 index gaining over 3% on the day. Analysts noted that while the details of the stimulus measures remain unclear, investors are hopeful that the policymakers' moves will provide a much-needed lift to the struggling Chinese economy.
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