Shanghai stocks rise above 4%

Mainland Chinese stocks ended more than four per cent higher on Tuesday but were well off their early highs as traders were left disappointed by a lack of new stimulus from Beijing and a few details about measures announced last month.

The Shanghai Composite Index, which opened more than 10 per cent higher, ended up 4.59 per cent, or 153.28 points, at 3,489.78, and the Shenzhen Composite Index on China’s second exchange, gained 8.89 per cent, or 171.29 points, at 2,098.77.

Equities have been on a tear since officials began announcing a raft of measures aimed at kickstarting growth in the world’s number two economy, with an emphasis on the troubled property sector.

Investors returned to the office Tuesday after a week-long holiday hoping a planned news conference would see more pledges or details on those already unveiled.

But the initial euphoria petered out at the lack of anything concrete.

Zheng Shanjie, head of China’s National Development and Reform Commission (NDRC), said the government was “fully confident” it will achieve its goal of around five per cent growth this year, a target that analysts say is optimistic.

In a note, Stephen Innes, managing partner at SPI Asset Management, said, “Tuesday’s press briefing from China’s top economic planner… was supposed to be the big moment, the one where Beijing unleashed a stimulus bazooka.”

“Instead, it was more of a pop gun.”

AFP

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