PDD Holdings Inc (PDD) witnessed a significant 12.06% surge in its stock price on Monday, riding a broader wave of optimism after China signaled a pivotal shift in its monetary policy stance and increased economic stimulus measures.
China's top leaders announced plans to adopt a "moderately loose" monetary policy in 2025, marking the first such shift towards easing since 2011. The Politburo, the Communist Party's highest decision-making body, also pledged to implement a "more proactive" fiscal policy and step up "unconventional" counter-cyclical adjustments to boost domestic consumption and expand demand.
The policy shift announcement, made during the Politburo's December conclave, fueled expectations of greater economic stimulus measures ahead, sparking a rally in Chinese equities. PDD Holdings, along with other Chinese ADRs and ETFs, surged as investors cheered the prospect of increased government support to bolster economic growth.
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