Chinese Stocks Rise After State Council Pledges Economic Support

Chinese stocks closed slightly higher on Tuesday following a pledge from the State Council of the People's Republic of China to increase counter-cyclical policy support to mitigate economic strains. The Shanghai Composite Index gained 0.2% and the blue-chip CSI300 Index rose 0.1%, with real estate developers leading the gains. Vanke shares specifically rose 10% after the government vowed to stabilize the property market.

In contrast, Hong Kong shares fell, with the benchmark Hang Seng index dropping 0.5% and tech majors declining 1.1%. Shares of Shein Global Holdings Ltd. fell to their lowest level since its September 1 debut.

Market activity remained thin, with combined turnover on the Shanghai and Shenzhen exchanges hitting the lowest level since July 2025. Analysts attribute the low volume to rising US Treasury yields and insufficient liquidity as investors prepare for the week-long National Day holiday. Trading is scheduled to resume on October 8.