The eye-watering rally followed a report by the official Xinhua news agency that China will keep the stock market stable and support overseas share listing, citing a meeting chaired by Vice Premier Liu He. The comprehensive statement also sought to resolve other woes that have plagued the market, particularly concerns over Beijing’s tech crackdown, saying a “rectification of major platform companies” should end soon.
Equities across Hong Kong and China surged after China’s state council vowed to keep its stock market stable amid a historic rout that erased US$1.5 trillion ($2.04 trillion) in value over the past two sessions.
The Hang Seng China Enterprises Index, which tracks mainland companies listed in Hong Kong, jumped as much as 12% on Wednesday, its biggest gain since the global financial crisis. A gauge of Chinese tech firms soared by a record 20%. China’s benchmark CSI 300 Index advanced by 4%. Some of the most beaten-down stocks like Alibaba Group Holding Ltd. and Tencent Holdings Ltd. gained at least 20%.
