FX.co ★ Chinese Stocks Extend Rally

The Shanghai Composite Index increased by 0.4%, reaching over one-month peaks at approximately 3,975, marking the eighth consecutive session of gains, the longest streak since July. Similarly, the Shenzhen Component climbed by 1% to achieve nearly two-month highs of 13,657 on Friday. This upward trend comes as the People’s Bank of China signaled the possibility of upcoming monetary easing. Goldman Sachs underscored the central bank's cautious easing stance as detailed in this week's Q4 Monetary Policy Committee statement, highlighting their preference for a reactive strategy to maintain policy adaptability. Investors are now attentively awaiting outcomes from the National People’s Congress Standing Committee meeting for any indicators of further policy support. Among notable performers were BYD, with a substantial rise of 5.6%, along with Ping An Insurance, East Money Information Co., and Zijin Mining Group Co., which saw increases of 1.1%, 1.6%, and 4%, respectively. Over the week, both the Shanghai Composite and Shenzhen Component are poised for strong weekly gains.