SHANGHAI: China stocks traded sideways on Tuesday, with traders mulling the country’s latest economic policies after global investors dumped Chinese assets in the previous session, fearing President Xi Jinping’s new leadership team would put politics over the economy and stick to the strict zero-COVID policy.
The blue-chip CSI 300 Index closed down 0.2%, after rising as much as 1%, while the Shanghai Composite Index ended almost flat.
The Hang Seng Index slipped 0.1%, and the Hang Seng China Enterprises Index jumped 1.3%. In the previous session, the CSI 300 Index lost 2.9%, while the Hang Seng index slumped 6.4% to record its worst day since the 2008 global financial crisis.
China said on Tuesday it will promote foreign investment with a focus on manufacturing industries, after President Xi called in China to “win the battle” in core technologies during the Communist Party Congress.
Tourism-related companies climbed 2.5% after the state planner said China will facilitate the entry and exit of executives, technicians and their families of multinational companies to the country.
New energy and machinery shares advanced 1.8% and 2%, respectively.
Foreign investors bought a net 2.8 billion yuan ($390 million) of Chinese onshore shares via Stock Connect, after record foreign outflows via the scheme in the previous session.
Monday’s selloff in Chinese equities does not correspond with fundamentals and creates an opportunity for investors, analysts at JPMorgan said on Monday.
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