HSBC’s economics team has upgraded its gross-domestic-product growth forecasts for China for 2025 and 2026, citing firmer domestic demand and the likelihood of additional policy support. The revision follows a string of official and private-sector signals that Beijing is prepared to ease monetary conditions to shore up activity. Shanghai Securities News reported authorities may lower benchmark lending rates and banks’ reserve-requirement ratios in the second half of the year to cut financing costs. Separately, Hong Kong Financial Secretary Paul Chan wrote that steady expansion on the mainland and an active capital market should underpin consumer spending after the city’s economy grew 3.1% in the second quarter. Improved sentiment toward Chinese assets has filtered into equity markets. Agricultural Bank of China shares recently reached an all-time high amid optimism over dividend payouts, while broader Chinese bank stocks have climbed on expectations that stronger earnings can be sustained. Reflecting the brighter outlook, JPMorgan raised its price target for HSBC Holdings to 870 pence from 830 pence. The broker said the London-listed lender, which generates a large share of its profits in Asia, stands to benefit from faster growth in mainland China and Hong Kong.