The iShares China Large-Cap ETF (FXI) experienced a notable pre-market surge of 5.87% on Thursday, as investors cheered the prospects of China's economy receiving a boost from anticipated stimulus measures in the fourth quarter.
The rally was fueled by 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, including the FXI ETF.
Moreover, expectations are mounting that China's economic growth could improve in the final three months of the year, aided by the government's fiscal and monetary policy efforts. Analysts suggest that the stimulus blitz could help China achieve its 5% economic growth target for 2024, marking a significant rebound from the recent economic slowdown.
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