China’s blue-chip equity index capped its best three-session run in more than two years on Tuesday after the cabinet announced new economic stimulus measures, which investors view as a sign that Beijing is shifting away from austerity.
A combination of concern about a trade war with the US and the impact of a fierce campaign against debt and financial risk have hammered Chinese stocks this year.
At its low point on July 6, the CSI 300 index, which tracks Shanghai and Shenzhen-traded blue-chips, had shed a quarter of its value from a two-and-half-year intraday high touched late in mid-January.
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