(Bloomberg) -- A rebound in Chinese stocks accelerated in afternoon trading amid speculation that a key economic meeting expected in December may unleash more stimulus.

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China’s CSI 300 Index closed 1.7% higher, posting its biggest gain in three weeks, with tech stocks rising the most. The risk-on mood was also evident in Hong Kong, where a gauge of Chinese stocks rallied 2.6%.

The sudden rebound confounded some market watchers, especially as the gains came in the wake of Donald Trump’s threat of additional tariffs and cabinet appointments that underscored his trade agenda. Investors pointed to an unverified screenshot circulated in online chat groups showing that the Central Economic Work Conference will be held earlier than expected and set the 2025 fiscal deficit target at a higher-than-usual ratio.

While most investors have grown numb to such speculations, the market is ripe for a natural bounce, said Li Changmin, managing director at Snowball Wealth in Guangzhou. “The bull market can remain intact as long as we can see the efficacy of the policy package, with time.”

Wednesday’s rebound, while the drivers remain unclear, offers a welcome respite to investors eagerly waiting for the market to resume an uptrend. Traders have been looking to the CEWC for fresh catalysts after a stimulus-driven rally cooled since an October peak. Some are expecting Beijing to ramp up policy support to offset potential economic risks from the US president-elect’s policies.

READ: China Hints at Pro-Business Push, Smaller Fiscal Boost in 2023

Usually held in December, the meeting typically offers a blueprint on monetary, fiscal and various industrial policies for the coming year. It could also offer an idea of growth targets and the budget deficit, though the specific numbers won’t be publicized until the annual parliament session in March.

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