SHANGHAI: China stocks rebounded on Tuesday but still hovered around nine-month lows, as analysts saw opportunity from cheap valuation following recent slumps, while measures to boost market also helped.
China’s blue-chip CSI 300 Index gained 0.8% at close, while the Shanghai Composite Index rose 0.9%.
Hong Kong’s Hang Seng Index ended up 1% and the Hang Seng China Enterprises Index added 1.1%. Last week, both the CSI and Hang Seng benchmarks had dropped to their lowest levels since late November 2022, erasing all gains accumulated after China’s reopening from COVID curbs. China’s weakening yuan found some support from smoothing operations by domestic state banks and the central bank but stayed unsteady as rising US yields put downward pressure on the yen and other global currencies. Zhang Chi, chief strategist at Sinolink Securities, said it was the perfect time to buy. “The sentiment is over-pessimistic and stocks are oversold.” More than a dozen Chinese asset managers, including E Fund Asset Management Co and China Asset Management Co, said they would use their own money to buy into equity funds.
Despite the gains, foreign investors still sold a net 6.3 billion yuan ($863.97 million) of Chinese shares on Tuesday, marking the 12th straight session of outflow in a row.
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