Just now, the Hong Kong stock market surged sharply, with the hang seng tech index rising over 4% and the hang seng index increasing by 2%. The ftse china a50 index futures also surged, at one point rising over 4%.

Hong Kong stock broker stocks strengthened in the closing hours, with China Merchants rising over 13%, Everbright and Citic Sec rising over 7%, CSC rising over 6%, and China International Capital Corporation and China Galaxy rising over 5%.

On December 9, the Politburo of the Central Committee convened a meeting to analyze and study the economic work for 2025; to hear reports from the Central Commission for Discipline Inspection and the National Supervisory Commission, and to study and deploy the Party's style and clean government construction and anti-corruption work for 2025. The meeting mentioned the need to stabilize the real estate and stock markets. It was noted that a more proactive fiscal policy and moderately easy mmf policy should be implemented.

Major surge

After the A-share market closed, a major turning point occurred. FTSE China A50 index futures surged sharply, once soaring nearly 5%; Hong Kong stocks quickly turned strong. $Hang Seng TECH Index (800700.HK)$ Rising over 4%, $Hang Seng Index (800000.HK)$ Increased by nearly 3%. $Direxion Daily FTSE China Bull 3X Shares ETF (YINN.US)$ Pre-market surge of nearly 18%, $Direxion Daily CSI 300 China A Share Bull 2X Shares (CHAU.US)$ Pre-market increase of over 10%.

China concept stocks collectively rose in pre-market trading, with pdd holdings up over 7%, Alibaba up over 6%, and Bilibili and futu soaring over 9%.

The main reason for the market's rise is the uplifting news from a major conference. The Political Bureau of the Central Committee of the Communist Party of China held a meeting on December 9 to analyze and study economic work for 2025; received reports from the Central Commission for Discipline Inspection and the National Supervisory Commission, and studied and deployed the construction of party conduct and anti-corruption work for 2025.

In terms of the stock market and real estate market, the meeting emphasized stabilizing the real estate and stock markets, preventing and resolving risks in key areas and external shocks, stabilizing expectations, invigorating the economy, continuously improving people's living standards, maintaining social harmony and stability, and successfully completing the "14th Five-Year Plan" goals and tasks to lay a solid foundation for a good start to the "15th Five-Year Plan."

Regarding the financial and monetary policies most concerning to the market, the meeting pointed out the need to implement a more proactive fiscal policy and moderately loose monetary policy, enrich and improve the policy toolbox, strengthen extraordinary counter-cyclical adjustments, deploy a policy "combination punch," and improve the foresight, relevance, and effectiveness of macro-control.

How will the future market trend?

Analysts believe that with the significant outbreak in external markets, A-shares may also have a good opportunity. Following the meeting of the Central Political Bureau, the Central Economic Work Conference will also take place. From the tone of previous Central Economic Work Conferences, it is generally based on the decisions made in the Central Political Bureau meeting in December.

A research report from citic sec indicates that the policy tone of the Central Economic Work Conference is expected to remain positive, which will further boost investor confidence. With the implementation and effectiveness of the previous package of policies and the strength of social financing, the domestic economy is steadily recovering as the year ends, and the momentum is sustained. The macro liquidity environment is becoming more stable, and there is still the possibility of a reserve requirement ratio reduction in the near future. The market's policy consensus is expected to rise further, which will again boost investor confidence, especially enhancing institutions' risk appetite. At the same time, after external negative factors have been fully digested by the market, investors' responses have become numb. Institutional funds, active funds, and retail investors' funds are expected to resonate, driving the A-share market into the new year.

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