China stocks, including Alibaba (BABA), JD.com (JD), NIO (NIO), PDD Holdings (PDD), and Xpeng (XPEV), rise after officials indicated a shift in economic policy. The country says it will embrace a "moderately loose" monetary policy and take a "more proactive" approach to fiscal stimulus policy before President-elect Donald Trump's return to the White House.

KraneShares CIO Brendan Ahern joins Julie Hyman on Market Domination to discuss what's sending the stocks higher and what it means for China's equity market.

Ahern tells Yahoo Finance there are two main drivers sending China stocks higher: "One is just who [the release] came from. The second would be what was in this release that may be different from what we've seen in the past."

The news "came from a Politburo statement release," the strategist says, explaining, "This is really almost like the highest echelon of the Chinese government ... The release itself was from a meeting presided over by President Xi himself."

Beyond the release coming from top leadership in China, the language within the release also sparked a bullish attitude from investors. "They used the term 'monetarily loose' to describe monetary policy. That's the first time since 2011 that they used the term loose as opposed to stable," Ahern said, adding, "The other thing it mentioned in the release that got investors very excited is that they use the term 'proactive fiscal policy.'"

Watch the video above for more on the significance of the policy shift.

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