SHANGHAI: Chinese stocks jumped on Tuesday, reversing previous declines, a day after the country’s top leaders pledged to step up policy support for the economy amid a flagging post-COVID recovery.
The blue-chip CSI 300 Index snapped a six-day losing streak by advancing 2%, while the Hang Seng Index jumped 3% at 0207 GMT.
Beijing will step up economic policy support to focus on expanding domestic demand, boosting confidence and preventing risks, state news agency Xinhua cited the Politburo, a top decision-making body of the ruling Communist Party, as saying.
The promises to aid the economic recovery came a week after data showed China’s growth lost momentum in the second quarter as demand weakened at home and abroad.
Shares rose across the board, with tech giants and property developers leading the gains.
Hong Kong-listed tech giants surged 4.7%, while mainland property developers climbed 12% after tumbling to around eight-month lows on Monday amid fears of a cash crunch and a lack of support from policymakers.
“We view the assessment of the economic growth situation and description around the property market as slightly more dovish than expected,” said Goldman Sachs analysts in a note.
“Though we still await specific easing measures after today’s statement.” China said it will adjust and optimise property policies in a timely manner, in response to “significant changes” in the supply and demand relationship in the property market.
Foreign money flowed in sharply, with overseas investor buying more than net 8 billion yuan ($1.12 billion) of Chinese shares via the Stock Connect so far.
Other sectors, including consumer staples, financials, automobiles and new energy , rose between 1.5% and 3.5%.