$Lion-OCBC Sec HSTECH S$ (HST.SG)$ There may be a Santa Clau...

There may be a Santa Claus / Chinese New Year rally in China stocks. HST may rise to around its Oct high of 0.889.

China's top leaders plan to loosen monetary policy and expand fiscal spending next year, as Beijing braces for a second trade war when Donald Trump takes office next month.

The 24-man Politburo led by President Xi Jinping announced it will embrace a "moderately loose" strategy for monetary policy in 2025, marking its first major shift in stance since 2011. The body also adopted stronger language on fiscal policy, according to the official Xinhua News Agency, saying it'll be "more proactive" - a step up from "proactive."

Signaling greater resolve to shore up confidence, officials at the Dec meeting also pledged to "stabilize property and stock markets," and ramp up "extraordinary counter-cyclical policy adjustment" - use more uncommon tools to boost the economy.

Chinese stocks listed in Hong Kong rebounded in the final hour of trading as the nation's top leaders eased monetary policy and said they'll take steps to boost consumption.

The Hang Seng China Enterprises Index erased a small loss to climb more than 2%. The offshore yuan rebounded to trade 0.1% stronger on bets China's economy will recover due to the monetary and fiscal stimulus. The yield on 10-year government bonds slid two basis points to 1.938%.

The Politburo, comprising the ruling Communist Party's most senior 24 officials and led by President Xi Jinping, announced it will embrace a "moderately loose" strategy next year, in a sign of greater easing ahead that will likely be welcomed by investors hungry for more stimulus.