China soared on Tuesday, buoyed by growing signs that it is determined to end a years-long share price slump.
CSI 300 Index**35%, the largest percentage increase since November 2022.
Shanghai Composite Index ***32%, a solid one-day performance since March 2022.
In Hong Kong, the Hang Seng Index**4%, which includes many Chinese mainland companies. This is the index's best performance since July 2023.
A unit of China's sovereign wealth** said on Tuesday that it had expanded its holdings in publicly traded ETFs, adding to the latest wave of state-linked so-called national team investors.
This follows regulators' recent pledges of stability, a top body calling for more to boost confidence, and a series of changes to trading rules.
China's investors who missed out on the surge in 2023 in the US, Japan and other countries have become anxious and have found some unusual outlets for their setbacks.
These investors have suffered huge losses in recent years, and they are terrified and scarred," said the investment director of China-focused Bisheng Asset Management***. "So, I think China **realizes** that unless they intervene decisively, this market will be like a bottomless abyss**.
China