SHANGHAI: China shares closed higher on Tuesday, extending gains from the previous session after Beijing introduced a package of measures to boost investor confidence over the weekend, including a stamp duty cut on stock trading.
China’s blue-chip CSI 300 Index rose 1%, while the Shanghai Composite Index climbed 1.4%.
Hong Kong’s Hang Seng Index added 2% and the Hang Seng China Enterprises Index jumped 2.3%.
Both the CSI 300 and the Hang Seng benchmarks have bounced back from the nine-month lows hit earlier this month, boosted by the support measures.
The measures also include a slower pace of initial public offerings, further regulations on major shareholders’ share reductions, and lower margin financing requirements.
Analysts say the markets-focused policies could boost investor confidence for a short term, but it’s hard to revive a slowing economy. On Monday, the CSI 300 index erased most of its strong opening gains by close.
On Tuesday, most sectors rose, with artificial intelligence and semiconductors jumping more than 3.5% to lead the gains.
Healthcare and consumer discretionary added more than 2% each. In Hong Kong, tech giants climbed 2.6%. Mainland property developers surged nearly 6% amid reports that Chinese lenders were discussing cutting interest rates on existing mortgages.
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