Chinese stocks surged following pledges from the nation's top leaders to loosen monetary policy and bolster the economy. The benchmark CSI 300 Index rose 3.2% as the Politburo signaled a shift from a 'prudent' to a 'moderately loose' monetary policy stance, a significant language change marking the first such shift in 14 years. This policy adjustment aims to aid economic recovery amid challenges, including the impact of expected U.S. trade tariffs. The official Xinhua News Agency reported that the monetary policy shift means lower interest rates to support growth. The 10-year government bond yield fell 7 basis points to a record low of 1.84%, reflecting expectations of sizable interest rate cuts—the deepest since 2015. Economists project China's fiscal deficit could reach up to 4% in 2025, the highest since 1994, indicating increased government spending to stimulate growth. Chinese stocks led gains in Asian markets, with investors anticipating further bold stimulus measures from Beijing.