China economy hopes boost global equities [Video]

Chinese stocks surged and major European indices mostly rallied Thursday as China signalled further stimulus measures aimed at lifting the world’s second-biggest economy out of the doldrums.

Hong Kong closed up 4.2 percent and Shanghai finished with a gain of 3.6 percent, extending the week’s strong gains as a slew of bold measures from Beijing suggested leaders were listening to calls to reinvigorate growth.

On Thursday, China’s President Xi Jinping admitted that the country was facing new economic “problems” and pledged to ramp up employment and fix its troubled property sector.

“After months of market anticipation, the Chinese authorities are finally acknowledging the significant amount of work needed to relaunch the world’s second-largest economy,” said market strategist Patrick Munnelly at traders Tickmill Group.

Bloomberg reported Chinese leaders were also considering pumping more than $140 billion into its large state-run banks.

The Paris stock market led the way in Europe, gaining …