Investors have regained some of their appetite for China’s top stocks following recent announcements of government measures to stabilise economic growth, with the country’s blue-chip equity index ending its best three-session run for over two years on Tuesday.
The CSI 300 – which tracks the Shanghai and Shenzhen stock exchanges blue-chip stocks – has climbed 4.5% in the last three sessions and 8.7% since its lowest point on July 6, according to the Financial Times.
The rebound is still far from retaking the ground lost in recent weeks when China’s markets and currency slumped on the back of the weakest monthly economic growth data for two years and the first shots fired in a trade war with Washington. On July 6, when the CSI 300 index had lost one quarter of its value from January’s two-and-a-half-year high.
Earlier this week, Beijing announced a series of stimulus measures including tax cuts, heightened infrastructure spending and a $74 billion cash injection from the central bank. To investors, this has signalled the government’s intention to relax austerity for the sake of boosting liquidity and bolstering economic growth.