China stocks on Tuesday morning recouped some of the previous day's losses, supported by healthcare and financial shares, and small-caps bounced on foreign interest.
China stocks on Tuesday morning recouped some of the previous day’s losses, supported by healthcare and financial shares, and small-caps bounced on foreign interest.
The CSI300 index, which tracks the largest listed companies trading in Shanghai and Shenzhen, rose 0.3 percent, to 3,347.08 points at the end of the morning session, while the Shanghai Composite Index gained 0.2 percent, to 3,091.50 points.
On Monday, the blue-chip CSI300 index had its worst day in three weeks, shedding 0.9 percent while the SSEC dropped 0.7 percent.
At midday Tuesday, healthcare and banking sectors were among the top gainer with their sub-indexes rising 1.06 percent and 0.55 percent, respectively.
Gains for healthcare stocks came in the wake of reports in the Chinese media on Tuesday that President Xi Jinping spoke about healthcare at a national conference on the weekend.
Xiao Shijun, an analyst at Guodu Securities in Beijing, said mainland indexes are unlikely to have sharp moves in the near term.
“The overall tone of the market will remain stable,” Xiao said, predicting it will remain calm ahead of the G-20 summit in Hangzhou in early September.
China’s benchmark 10-year government bond yields rebound marginally from multiple-year lows, but still hover at a level that the lowest since January 2009.
Lower bond yields, while reflecting easing expectations, also make those high-dividend blue-chips a bit more attractive, analysts said.
Shenzhen’s start-up board ChiNext, which fell 1.7 percent on Monday, was up 0.5 percent at Tuesday’s lunch break.
In Hong Kong, the Hang Seng index dropped 0.3 percent, to 22,924.50 points. The Hong Kong China Enterprises Index lost 0.2 percent, to 9,581.66.
Chinese investment managers, taking advantage of a significant step to open up investment flows in and out of China, are aggressively marketing well-priced Hong Kong shares to mainland investors through stock connect schemes.