China's Politburo shifts to loose monetary policy, boosting stocks and bonds

China's Politburo has shifted its monetary policy to a "moderately loose" stance, signaling potential easing measures. This change, the first since 2010, aims to stabilize stock and property markets and boost domestic demand. Following the announcement, Hong Kong's Hang Seng index rose 2.8%, reaching a one-month high. Chinese government bonds also rallied, with 10-year yields falling to a record low of 1.922%. The shift comes as China's economy faces challenges, particularly in the property sector. Since late September, Chinese markets have seen significant gains, with the Hang Seng up 12% and the CSI 300 index up 23%.