China's stock market sees the biggest rise in three years of recovery hopes – live business | Business

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The year 2018 has been dark for Chinese investors, but things are finally improving.

The Chinese stock market has jumped more than 4% today, on its way for its best day since 2015, after President Xi Jinping promised to "seamlessly" support the country's private sector.

Making clear that Beijing would do more to protect the Chinese economy, Xi insisted that his government was alongside its corporate leaders.

In a letter to private entrepreneurs, the communist leader said:

"All the words and practices that deny and weaken the private economy are wrong.

Supporting the development of private enterprises is the constant policy of the Party Central Committee.

Other Chinese officials have also made favorable noises.

On Saturday, Deputy Prime Minister Liu He met with senior officials to discuss financial stability in the context of the US trade war. He then said that China needed to move faster to implement measures to encourage healthy development of the economy.

These comments are seen as evidence that China could ease its tax policy and cut taxes to support its economy, after seeing growth slow to its lowest rate in 10 years last week.

Chinese investors have embarked on the action, resulting in a rise of more than 4.3% in the CSI300 blue chips index at the end of the session. The Shanghai Composite index is up 4% and is expected to have its best day since March 2016.

Other Asian-Pacific markets have also rallied, in the hope that a large Chinese stimulus package would support growth in the region.

Jasper Lawler of London Capital Group said:

Asian equities rebounded on Monday, as Chinese stocks extended their rebound for a second consecutive session, driving up European futures.

Beijing's commitment to the economy overshadows geopolitical concerns over Saudi Arabia, Italy and Brexit.

Also coming today

Italian stocks could be under pressure after rating agency Moody's downgraded Italy's credit rating on Friday night. Moody's left Italy with a "stable" rating, which means that further deterioration would not be imminent.

This decision came as Rome was preparing to see its 2019 budget rejected by the European Union for failing to meet borrowing targets.

There is not much in the economic calendar, but the cheap airline Ryanair and the diamond producer Petra Diamonds publish results.