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SHANGHAI: Hong Kong stocks jumped 9% on Wednesday to mark their best day since 2008, after China’s top policymaker assured markets of stability and support and helped put a floor under sectors hurt by a regulatory crackdown.

Vice Premier Liu He said Beijing would roll out support for the Chinese economy as well as be cautious with measures for capital markets.

The Xinhua news agency also cited Liu as saying, at a meeting of the Financial Stability and Development Committee under the State Council, that regulators would coordinate better with their counterparts in Hong Kong.

The comments came a day after China stocks slumped to 21-month lows and mainland firms listed in Hong Kong plumbed 2008 lows.

Chinese stocks have been pummelled this year by rising domestic COVID-19 cases, fears about a blowback on China from its dealings with the sanctions-hit Russia, and continued regulatory crackdowns, including the risk of more mainland firms being delisted by U.S. exchanges.

Liu’s assurances helped the Hang Seng index claw back all the ground lost on Tuesday and more. The HSI surged more than 9% to above the 20,000-point mark.

The Hang Seng Tech Index logged its biggest daily gain of 22%, recovering a good deal of the ground it had ceded since March 10 as regulatory fears piled up.

“It’s quite positive, at least for the moment, as Liu addressed some key concerns in the market, especially regarding the regulatory crackdown,” said Ting Lu, chief China economist at Nomura. “Liu also demands the PBOC to take action, so I believe the PBOC will do some easing in the next couple of months.”

The blue-chip CSI300 index gained the most since July 2020, rising 4.3%, while the Shanghai Composite Index added 3.5% and the Hong Kong-listed China Enterprises Index gained 12.5%.

The CSI300 had lost 19% in the year to date through Tuesday’s close.

Among Hong Kong index heavyweights, Meituan jumped 32.1%, while Tencent Holdings and Alibaba Group soared 23% and 27%, respectively, logging their biggest daily gains. Other stocks caught in China’s regulatory crosshairs, such as education, also rallied, with New Oriental Education & Technology Group rising 37%.

Liu’s comments also helped to ease worries that encouraging economic data for January and February were leading to complacency among policymakers in Beijing.

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