China equities have seen a seemingly endless decline this year as investors sold out amid a barrage of bad news including a rolling property crisis, fears of a deflationary spiral and rising geopolitical tensions. That prompted Premier Li Qiang to urge more “forceful measures” steps to stabilize the stock market.
Chinese stocks rebounded as policymakers consider a package of measures to stabilize the slumping market, giving investors hope that the battered asset class may see short-term relief.
The Hang Seng China Enterprises Index rose as much as 3.8% Tuesday as Bloomberg reported authorities are seeking to mobilize about 2 trillion yuan ($377.2 billion) as part of a stabilization fund to buy shares onshore through the Hong Kong exchange link. The CSI 300 benchmark for mainland shares reversed losses to trade 0.6% higher.
