SHANGHAI: Chinese stocks closed up on Monday after authorities announced a package of measures to boost investor confidence, but the market erased most of the strong opening gains amid broader concerns about a stuttering economy.
China’s blue-chip CSI 300 Index was up 1.2% at the close, some distance from the 5.5% jump at the market open. Hong Kong’s Hang Seng Index ended nearly 1% higher after opening up 3.1%.
Beijing introduced a slew of measures over the weekend to shore up the market, as part of several other economic support steps over the past few weeks.
The finance ministry said it was halving stamp duty on stock trading. Reuters had reported on Friday that the government was considering a cut.
The measures also include a slower pace of IPOs, further regulations on major shareholders’ share reductions, and lower margin financing requirements.
“The policy package sent a clear signal to boost investor confidence as the market hit the bottom,” said analysts at China Asset Management Co.
Shares rose in most sectors, with securities brokers climbing 2.3%, after jumping more than 10% at the open.
“A reduction in stamp duty would benefit securities brokers directly,” said analysts at BOC International (China) Co, as trading activity could increase after the cut.
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