London-listed stocks closed Thursday trading in the positive territory, with the blue-chip FTSE 100 index up 0.20%, joining other markets in cheering for new economic stimulus measures from China. Policymakers in China committed to reinvigorating the world's second-largest economy and stabilizing its troubled property market during the meeting of the 24-man Politburo.
According to reports, China is planning to issue 2 trillion yuan of special sovereign bonds as part of the fresh fiscal stimulus. Proceeds will be used for purposes including boosting subsidies and upgrading large-scale business equipment in the country. Commentary from analysts reveals a cautious optimism: 'There isn't much meat on the bone in terms of what China did overnight as a Politburo meeting ended with a commitment to do more to help stabilize the property sector and to offer further fiscal stimulus.
China's fiscal position is already stretched, however, and we need specifics on the planned initiatives rather than just talk.' Back at home, data from the Society of Motor Manufacturers and Traders showed that UK car manufacturing fell 8.4% year over year in August to 41,271 units. Meanwhile, the number of commercial vehicles produced fell 10% year over year to 6,044 units.
In corporate news, HSBC agreed to transfer the clients, employees, assets, and liabilities of its South African branch to FirstRand Bank. Completion of the transaction is expected in the fourth quarter of 2025, subject to necessary approvals. At closing, the British lender saw a modest increase of 2.10%..