TAL Education Group saw its stock surge 5.42% in the premarket session on Monday, after China announced plans to adopt a more accommodative monetary policy stance for the first time since 2010 to support the country's economic growth.
According to state media reports, top Chinese officials unveiled at a Politburo meeting that the country will implement an "appropriately loose" monetary policy next year, along with a more proactive fiscal policy. This shift marks a departure from the "prudent" monetary policy stance that has been in place since late 2010.
The aim is to boost domestic consumption and demand through "unconventional" countercyclical adjustments, leveraging progress to ensure stability and drive innovation. China's move to loosen its monetary policy stance is expected to benefit Chinese companies, including TAL Education Group, as it will stimulate economic activity and potentially drive demand for their products and services.
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