Hong Kong and China stocks shoot up after Beijing vows tax cuts to boost manufacturers, small businesses
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Hong Kong and China stocks shot up Tuesday, after the Chinese government pledged tax cuts to boost manufacturing and small enterprises amid a slowing economy and the US-China trade war.
The Hang Seng Index surged 2 per cent, or 531.96 points, to close at 26,830.29, the highest level since December 4. The Shanghai Composite Index climbed 1.4 per cent, or 34.58 points, at 2,570.34.
Traders piled into stocks -- from banks and insurers to automobiles -- after China’s policymakers and government bureaus declared their resolution to help the slowing economy with supportive measures in several back-to-back press conferences.
The stimulus signals followed an unexpected slump in China’s December exports and imports on Monday, which amplified concerns over China’s economy and weighed down on markets from Hong Kong to New York.