Chinese leaders pledge 'moderately loose' monetary policy, more support for slowing economy

BANGKOK (AP) — China’s top leaders have pledged to loosen monetary policy and provide more support for the slowing economy, while Premier Li Qiang swiped at threats of higher tariffs on Chinese exports, saying they hinder global growth.

Shares in Hong Kong jumped Monday after state media released a report on the meeting by the ruling Communist Party’s Politburo that said leaders would “implement more active fiscal policies and moderately loose monetary policies.”

The shift to “moderately loose” from the “prudent” monetary policies of the past 14 years was taken as a significant shift by market players, unleashing a spate of buying that pushed the Hang Seng index up 2.8%.

“This marks a significant recalibration in their approach, aiming to cushion the anticipated economic shocks” (from higher tariffs), Stephen Innes of SPI Asset Management said in a commentary.