SHANGHAI: China stocks ended higher on Tuesday after the central bank cut the amount of cash banks must hold in reserve, while investors cautiously watched if Evergrande would default as the world’s most indebted developer inches closer to a debt restructuring.
The blue-chip CSI300 index closed 0.6% firmer at 4,922.10, while the Shanghai Composite Index gained 0.2% to 3,595.09 points.
Hong Kong shares rebounded from a 14-month low to close higher. The Hang Seng index rose 2.7% to 23,983.66, while the China Enterprises Index closed up 3.1% at 8,527.12 points. “The RRR cut is likely to boost investment sentiment and support valuation in the stock market,” said Chaoping Zhu, Global Market Strategist at J.P. Morgan Asset Management.