Chinese stocks rose from Monday’s open, extending last week’s gains, on increasing signs Beijing is determined to shore up growth with measures supporting weaker parts of the economy.
The CSI 300 Index climbed as much as 1.8% in early trading, taking its monthly gains to 5.8%, the most since January. Consumer staples and financials led the advance. The Hang Seng China Enterprises Index, which tracks mainland stocks listed in Hong Kong, rose 3%.
Enthusiasm toward China shares has been boosted as regulators have made a series of high-profile pledges to prop up the ailing economy and introduced incremental policies to back up their vows. The nation is expected to announce new measures to bolster consumption, while optimism is building that larger cities such as Beijing and Shenzhen will follow through on the Politburo’s pledge to optimize China’s property policies.
At the same time, the recovery is still wobbling, with high-frequency indicators showing the economy lost further momentum in July, and a separate report showing consumers cut back on spending. An official gauge of China’s manufacturing activity published Monday beat expectations, while an index of non-manufacturing activity stayed in expansionary territory for a seventh month.
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