SHANGHAI: China stocks closed slightly up on Tuesday, after the country’s cabinet pledged to step up counter-cyclical policy support to address rising economic strains, though trading remained thin ahead of an upcoming holiday. Hong Kong shares fell.
China’s blue-chip CSI300 Index closed 0.1percent up, while the Shanghai Composite Index gained 0.2percent. Hong Kong benchmark Hang Seng was down 0.5percent.
China’s real estate developers led gains onshore, with Vanke shares up 10percent, after the State Council meeting vowed to roll out measures to stabilise the property market.
“We expect policymakers to further broaden the use of housing provident funds to slightly reduce weighted-average mortgage rates, and more large cities to introduce local housing easing measures,” analysts at Goldman Sachs said in a note.
Sentiment among AI component makers rebounded slightly, with the 5G Communication Index up 0.7percent and the tech-focused STAR50 Index rising 0.9percent.
Rising US Treasury yields, coupled with insufficient liquidity ahead of the week-long holiday, weighed on the market sentiment, analysts at Northeast Securities said in a note.
“However, after the sharp declines, with negative sentiment quickly running its course, quality assets have become more attractively valued again,” the analysts said.
Combined turnover on China’s Shanghai and Shenzhen stock exchanges are just 1.41 trillion yuan on Tuesday, the lowest level since July 7, 2025.
China’s week-long National Day holiday will start on Thursday, with onshore trading resuming on October 8. The Hang Seng Innovative Drug Index rose 3.2percent. Tech majors listed in Hong Kong fell 1.1percent. Shares of fast-fashion platform Shein Global Holdings fell to their lowest level since the firm’s debut on September 1.
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