Mining shares were sent higher on Monday after Beijing vowed next year would bring further measures to prop up China’s flagging economy.
Antofagasta PLC (LSE:ANTO) climbed 5.5% in the wake of the commentary from China’s Politburo, with Glencore PLC (LSE:GLEN), Rio Tinto PLC and Anglo American PLC (LSE:AAL) also surging.
A Politburo meeting readout showed pledges from the government to stabilise the likes of the housing and stock markets over the year ahead.
“A more proactive fiscal policy and an appropriately loose monetary policy should be implemented, enhancing and refining the policy toolkit, strengthening extraordinary counter-cyclical adjustments,” it said.
ANZ’s senior China strategist Xing Zhaopeng noted the wording signalled “big” interest rate cuts and asset buying ahead.
Following a string of measures announced earlier this year, such cuts would mark a renewed effort by Beijing to breathe life into the likes of its crisis-hit property sector.
“Attention now turns to the Central Economic Work Conference later this week, where additional fiscal and monetary signals are expected,” Scope Markets analyst Joshua Mahony said.
“While this policy adjustment is a step in the right direction, meaningful economic recovery will likely depend on the scale and speed of forthcoming fiscal support.”