China and Hong Kong stock markets experienced early gains on Thursday following Beijing’s decision to slightly lower its economic growth target, hinting at a strategic move towards economic rebalancing. In the first hour of trading, China’s blue-chip CSI300 Index rose by nearly 1% and the Shanghai Composite Index increased by 0.5%.
After suffering a six-month low in the previous session, Hong Kong’s Hang Seng Index increased by 1.3%. China’s revised growth target for 2026 is now set at 4.5% to 5%, down from the 5% target achieved last year. This adjustment provides leeway for tackling industrial overcapacity and restructuring the economy.
China’s 15th five-year plan includes commitments to innovation, high-tech industries, scientific research, and raising household consumption as a portion of economic output. Leading the market gains, the CSI Artificial Intelligence Index and CSI Semiconductor Industry Index rose by 2.4% and 1.7%, respectively.
(With inputs from agencies.)