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.”
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