The Hang Seng Index jumped 3.7 per cent to 15,506.59 at 2.20pm local time, after sliding below the 15,000-point psychological level on Monday to the lowest since October 2022. The Hang Seng Tech Index rallied 3.6 per cent, while the Shanghai Composite Index jumped 0.9 per cent to climb out of the May 2020 low.
Premier Li called on officials to “vigorously improve the quality and investment value of listed companies, increase the entry of medium and long-term funds into the market, and enhance the inherent stability of the market,” Xinhua News Agency reported, after he chaired a State Council meeting in Beijing on Monday.
“We are keeping our hopes up, regarding the policymaker’s willingness to do something, to put a backstop to the the current slide and restore confidence,” Helen Qiao, chief Greater China economist at BofA Global Research, said during a media briefing on Tuesday. “We think that will be done, one way or the other.”
Chinese regulators retract gaming rule proposal after stock market turmoil
Chinese regulators retract gaming rule proposal after stock market turmoil
China’s premier Li Qiang orders measures to halt market rout
China’s premier Li Qiang orders measures to halt market rout
Stock indices slumped to fresh lows in Hong Kong, Shanghai and Shenzhen on Monday. More than US$1 trillion of market capitalisation has been erased from Chinese stocks listed in mainland China and Hong Kong this year alone, matching all of the sell-off in 2023, according to Bloomberg data.
“It is too early to cheer for any solid improvement in sentiment, especially with the ongoing concern about policy risks and a less appealing growth story,” said Gary Ng, a senior economist at Natixis. “The market has clearly not ruled out the possibility of a dead cat bounce until the stimulus is on the table.”
“We’re closely watching the volatility of the stock market,” Hong Kong’s Chief Executive John Lee Ka-chiu said on Tuesday. Regulatory agencies, especially the monetary authority, will exercise caution and remain vigilant. Currently, the market is still operating in an orderly manner without any unusual situation, he said.
Other key Asian traded higher. Australia’s S&P/ASX 200 gained 0.5 per cent and South Korea’s Kospi added 0.6 per cent. Japan’s Nikkei 225 weakened 0.1 per cent.
Additional reporting by Yulu Ao