Chinese fintech stocks surge after China signals looser monetary policy

UP Fintech (NASDAQ:TIGR), Futu Holdings (NASDAQ:FUTU), KE Holdings (NYSE:BEKE), and Lufax Holding (NYSE:LU) were among Chinese stock trading and real estate app stocks that surged after China said it will adopt “appropriately loose” monetary policy next year. Such a move would represent the country’s first policy easing in 14 years, combined with a fiscal policy to boost economic growth, according to media reports.

China will increase use of “unconventional” countercyclical adjustments that aim to expand domestic demand, Reuters said on Monday, citing Xinhua’s reporting on a meeting of top Communist Party officials.

“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,” the readout of the meeting said.

Easier fiscal and monetary policy bodes well for stock trading and real estate transactions as it becomes cheaper to borrow money.

In another favorable development for the world’s second-largest economy, China’s consumer price index rose only 0.2% Y/Y in November, easing from 0.3% in October and lower than market expectations for a 0.5% increase.

KraneShares CSI China Internet ETF (NYSEARCA:KWEB) moved up 11% in late Monday morning trading in U.S. markets. UP Fintech Holding (NASDAQ:TIGR) class A ordinary shares soared 34%, Futu Holdings (NASDAQ:FUTU) American depositary shares surged 22%, Ke Holdings (NYSE:BEKE), which operates a popular real estate platform, saw its ADSs climb 16%, ald Lufax Holding (NYSE:LU) ADSs gained 14%.