Stock markets in Shanghai and Shenzhen ended Tuesday with solid victories as strong expectations that the central government would take steps on the policy front to help the ailing financial markets countered a weakened economic growth outlook for East Asia from the International Monetary Fund (IMF).
The Shanghai Composite Index added 40.81 points, or 1.97 percent, to close at 2,115.23; while the Shenzhen Component Index advanced 2.39 percent, or 203.79 points, to finish at 8,743.86.
Both markets opened higher Tuesday and climbed steadily throughout most of the morning session on strong showings from the heavily weighted finance, securities, coal, non-ferrous metal, medicine, home appliance, real estate and railway construction sectors. The Shanghai Composite Index breached the 2,100 point mark by the mid-day break and then crept slightly higher in the afternoon session.
In what as a broadly positive day for mainland A-shares, securities, Internet, media, medical and chemical fiber notched some of the biggest wins.
Mainland banks got a nudge following an announcement that Central Huijin Investment Ltd, a State-owned investor, had raised its ownership in Industrial and Commercial Bank of China (ICBC) during the third quarter. ICBC shares rose 1.33 percent on the day to 3.80 yuan ($0.60). China Merchants Bank Co tacked on 1.08 percent to 10.28 yuan.
Securities stocks were lifted hugely by a report in the Shanghai Securities News Tuesday that the government may soon implement new policies to ease restrictions on brokerages' operations and investment scales. Industrial Securities Co surged to the daily limit to finish at 10.38 yuan. Western Securities Co edged up 6.42 percent to 14.76 yuan. Founder Securities Co climbed 5.18 percent to 4.47 yuan on the day.