Chinese Assets Surge! YINN Skyrockets 25%

In a significant shift, Chinese assets led the charge in global markets tonight, with the majority of the MAG 7 indices seeing a decline . The surge in Chinese assets was particularly pronounced, with YINN ETF surge over 25%. Fangdd, a Chinese real estate platform, triggered circuit breakers three times during the U.S. trading session with a staggering gain of over 122%.

As of press time, the HXC has skyrocketed by over 9%, with popular Chinese stocks experiencing significant gains. Fangdd led the pack with a more than 122% increase, followed by TIGR with over 34%, FUTU with more than 22%, BILI with a rise of over 22%, and BEKE with an increase of nearly 16%.

This market movement follows a report from Xinhua News Agency that the Politburo held a meeting on December 9th to analyze and research economic work for 2025. According to Goldman Sachs' trading desk, compared to the September meeting, today's meeting minutes indicate that policymakers have strengthened their pro-growth stance, with a heightened focus on domestic demand, household livelihoods, and local official incentives. They also pledged to stabilize the real estate and stock markets.

The market had low expectations prior to the meeting, making the outcome a pleasant surprise as the rhetoric was more accommodative than anticipated. This is especially considering the policymakers' vow to strengthen unconventional counter-cyclical policy adjustments and to comprehensively expand domestic demand. The monetary policy stance was shifted from prudent to moderately loose, a characterization not seen since 2009-10 by the People's Bank of China. We anticipate that the upcoming Central Economic Work Conference will send further easing signals and believe that more specific demand-side stimulus measures will be rolled out early next year.