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hinese stocks continued their upward trend on Monday, driven by government measures aimed at boosting the country's second-largest economy through a consumption slump and property crisis. The CSI 300 index surged 8.5%, its best week in over a decade, while Hong Kong's Hang Seng Index rose 2.4%.

    China's property sector saw significant gains after three major cities - Shanghai, Shenzhen, and Guangzhou - relaxed restrictions on home purchases. Guangzhou removed all purchase restrictions for non-resident families, while Shenzhen will allow them to buy a second home with at least two children. Shanghai is also lowering its down payment requirement.

    The government's efforts to stabilize the real estate market have been described as the "strongest housing pledge to date" by DBS. Six major Chinese banks announced plans to adjust mortgage rates for existing loans, with details to be released on October 12 and implementation by October 31.

    Economists believe that the shift in official rhetoric reflects an increasing urgency to address the property crisis, which has been dragging down consumer confidence due to its significant contribution to China's economy. The government has also unveiled a wave of new stimulus pledges, including rate cuts and a reduction in reserve requirements, estimated to inject 1 trillion yuan ($142 billion) into the financial market.

    Despite these efforts, economists remain cautious about the impact on growth, with Oxford Economics sticking to its 4.8% forecast for China, below Beijing's official target. However, investors are optimistic that further policy support will be forthcoming, driving a rally in Chinese markets.