Chinese stocks bounced on Tuesday. The Shanghai Composite Index surged over 2.7 per cent to 2779, the biggest one-day gain in more than two years, 5-day moving average recovered, ending 4-day losing streak.
The Shenzhen Component Index soared 3 per cent to 8674, ending nine-day losing steak and the Chinext Index rose 2.7 per cent to 1479. Energy companies led the gains on that the county’s crude oil futures limited up on the day for the first time to hit a new high since its launch in March.
Infrastructure construction company and steel makers outperformed boosted by the government’s pledge to increase infrastructure spending to stimulate the economy.
China Railway Corporation said on the day that its railway investment is expected to exceed 800 billion yuan this year, more than originally planned 732 billion yuan, driven by the upcoming infrastructure push.
Hang Seng Index gained 1.5 per cent to close at 28248 and Hang Seng Enterprises Index also climbed 1.5 per cent led by Chinese real estate developers.
China Evergrande surged 21 per cent after the company said it expected its after-tax net profit in the first half to have risen over 125 per cent from a year ago and net gearing ratio to have dropped below 130 per cent from 184 per cent at the end of last year. Sunac China and Country Garden up 8 per cent and 6 per cent respectively.