SHANGHAI: Chinese stocks climbed on Tuesday after dozens of Chinese companies announced plans to buy back shares to boost investor confidence, while a rebound in global shares helped sentiment.
The blue-chip CSI 300 Index closed up 0.4% and the Shanghai Composite Index rose 0.3%. Hong Kong’s Hang Seng Index advanced 0.8%.
Other Asian stocks also rose in cautious trade, with investors choosing to focus on corporate earnings prospects and the resilience of the US economy amid tensions in the Middle East. Dozens of China-listed companies announced plans on late Monday to buy back shares or scrap plans of stock selling, following a slew of measures the authorities took to boost a flagging stock market. China’s third-quarter gross domestic product (GDP) data, due on Wednesday, is expected to show growth slowing as demand at home and abroad faltered, according to a Reuters poll.
“China’s economy has shown signs of stabilization. However, these signs might be due to base effects, price factors or sample bias,” said Ting Lu, chief China economist at Nomura.
“The bottom-out of China’s stock market eventually depends on real improvement of economic data,” said Vanho Securities in a note.
Shares in securities brokers, semiconductors and new energy companies rose.
But stocks in real estate fell, as traders keep a wary eye on whether Country Garden will default on its offshore debt as a repayment deadline looms.
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