Mainland Chinese stocks closed more than 4% higher on Tuesday, but were still well off their early highs, as traders were frustrated by a lack of new stimulus from Beijing and a few details regarding measures unveiled last month.
The Shanghai Composite Index, which opened more than 10% higher, ended up 4.59%, or 153.28 points, at 3,489.78, while the Shenzhen Composite Index on China’s second market rose 8.89%, or 171.29 points, to 2,098.77.
Equities have surged after officials announced a slew of measures aimed at reviving development in the world’s second largest economy, with a focus on the struggling real estate sector.
Investors returned to work Tuesday following a week-long vacation, hopeful that a planned news conference will reveal more pledges or details on those previously announced.
However, the initial exhilaration faded due to a lack of tangible results.
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.”