The iShares China Large-Cap ETF (FXI) experienced a notable pre-market surge of 5.87% on Thursday, driven by renewed optimism surrounding China's economic prospects and the government's efforts to revive growth.
Investors cheered the Chinese central bank's launch of two funding schemes aimed at injecting liquidity into the stock market. The central bank plans to initially pump up to 800 billion yuan ($112 billion) through these newly created monetary policy tools, boosting investor sentiment and triggering a rally in Chinese equities.
Moreover, expectations are mounting that China's economic growth could improve in the fourth quarter, aided by the government's anticipated stimulus blitz. Analysts suggest that the fiscal and monetary policy measures could help China achieve its 5% economic growth target for 2024, marking a significant rebound from the recent economic slowdown.
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