Beijing also increased support for private enterprises over the weekend through measures including a simplified process for listed companies to buy back shares, tax cuts of larger scale and more significant fee reduction on companies, Reuters reports.

Analysts at Chengdu-based Chuancai Securities argued that risk appetite is on the rise in the Chinese equity market in response to the introduction of the new policy measures.

“The A-share market is entering its latter phase of corrective rebound,” the analysts said in a note. “We will focus on high quality growth stocks in artificial intelligence, 5G, cloud computing and chipmakers, and blue chips in the financial, real estate and pharmaceutical sectors.”

For more information on the Chinese markets, visit our China category.

Subscribe to our free daily newsletters!
Please enter your email address to subscribe to ETF Trends' newsletters featuring latest news and educational events.