China stocks edge up on policy support pledge

Business Recorder reported that China stocks edged up on Tuesday after the cabinet pledged more counter-cyclical policy support to tackle mounting economic strains, although trading stayed thin before an upcoming holiday. The Shanghai Composite gained 0.1 per cent and the CSI300 was roughly flat at the lunch break, while Hong Kong shares declined and the Hang Seng slipped 0.6 per cent.

Property developers led onshore gains, with Vanke jumping nearly 8 per cent after the State Council vowed steps to steady the housing market. Goldman Sachs analysts expect authorities to widen the application of housing provident funds to lightly lower average mortgage rates, and more major cities to ease local housing rules.

Northeast Securities analysts blamed rising US Treasury yields and limited liquidity before the week-long holiday for weighing on sentiment, but said quality assets had become more attractively valued after steep falls. Onshore trading resumes on October 8, after the National Day holiday that starts Thursday. Large technology firms in Hong Kong dropped 1.4 per cent, while the Hang Seng Innovative Drug Index climbed 3.3 per cent.