Update | Chinese stocks rise most in two months as Beijing deemed to be adjusting policies to boost domestic growth
Shanghai Composite Index jumps 2pc, Hang Seng bounces 1.26pc
Chinese stocks rallied the most in two months on Tuesday, after the country’s top leaders signalled what was read as more flexibility in bolstering economic growth and loosening monetary policy, amid mounting trade tensions with the US.
The Shanghai Composite Index jumped 2 per cent, or 60.92 points, to 3,128.93 by the close, a recovery after Asian markets were dampened last week as the US and China squared up over trade tariffs. The CSI 300 Index of big-caps also advanced 2.04 per cent.
In Hong Kong, the Hang Seng Index rose 1.26 per cent, or 381.84 points, to end at 30,636.24, snapping two days of losses, with financial companies leading the charge.
The Hang Seng China Enterprises Index, or the H-share gauge, advanced 2.4 per cent in another sign of renewing optimism.
The buying sentiment strengthened after a Politburo meeting, chaired on Monday by President Xi Jinping, aired the rarely mentioned expressions “boost domestic demand” and “keep in check the floodgate of monetary supply”, while omitting the word “deleveraging”.
Xi told the meeting China also wants to promote the healthy development of its credit, stock, bond, currency and property markets.
