China’s big monetary policy shift spurred a stock surge. But ‘a lot of volatility’ still looms.

News Snapshot:

Chinese stocks rallied on Monday after the country signaled a more aggressive approach to stimulus next year. Beijing's top leaders revealed they will embrace a "moderately loose" monetary policy and a “more proactive” fiscal policy, according to China state media Xinhua News Agency. "Relative to the low market expectations prior to the meeting, we view the outcome as an upside surprise due to stronger easing rhetoric," Goldman Sachs chief China economist Hui Shan wrote in a note to clients on Monday, adding the team expects "more concrete demand-side stimulus measures" to be announced early next year. Notably, the last time...