China’s stocks rose, with the benchmark index for mainland companies in Hong Kong surging the most since December 2011, after the government pledged to ease the one-child policy and boost private investment as part of the biggest package of economic reforms since the 1990s.
In the biggest expansion of economic freedoms since at least the 1990s, China’s leaders vowed to expand farmers’ land rights, loosen the one-child policy and encourage private investment in state businesses.
China’s state-owned companies, coddled by cheap credit and sheltered monopolies for years, face a less comfortable future after Communist Party leaders pledged to give market forces a bigger role in the economy.
China’s stocks slumped the most in almost seven weeks after a top-level Communist Party meeting disappointed investors looking for details on policy shifts to combat a slowdown in the world’s second-largest economy.
China’s stocks advanced, capping the benchmark index’s biggest gain in a month, while borrowing costs rose amid speculation the government will unveil detailed changes in economic policy as soon as next week.