Chinese stocks fall as investors unimpressed by fresh market support measures

Chinese stocks fell on Tuesday as investors sold energy and technology shares, with regulators' latest measures to stabilise the country's struggling capital markets failing to revive sentiment.

The blue-chip CSI300 Index and the benchmark Shanghai Composite Index both declined around 1% in early trade, erasing gains from the previous session. Hong Kong's Hang Seng Index was largely unchanged, Reuters reported.

Chinese regulators announced a series of measures on Monday to support the stock market, including swap operations and an upgrade to a lending facility aimed at encouraging listed companies to buy back their shares, according to Reuters.


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The measures came after the CSI300 slumped 8.5% in October, marking its worst monthly performance in more than a decade, as a sustained selloff in technology stocks weighed on investor sentiment.

However, the latest policy support fell short of market expectations, Reuters reported, citing Chen Jiande, a fund manager at Fujian Tianlang Asset Management. Investors holding battered technology stocks were using any market rebound as an opportunity to exit their positions, he added.

The technology-focused STAR Composite Index dropped 1.6%, reflecting continued weakness in the sector.

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Investor sentiment was also affected by concerns over the financial health of state-owned developer Zhuhai Huafa Group. Reports that the company was seeking extensions on some bank loans added to concerns about financial risks in China's property sector, Reuters reported.

Meanwhile, Chinese government bond yields remained largely steady in early trade. Yields on 10-year and 30-year government bonds edged down around 0.3 basis points each, according to Reuters.

(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)