BEIJING: China stocks rose just over one percent on Tuesday morning after Chinese authorities announced new measures to crack down on short selling, which has been partly blamed for the plunge in mainland equities last month.
Both the Shenzhen and Shanghai stock exchanges unveiled measures that would make it more difficult for speculators to profit from hourly gyrations in stock prices.
Beijing has taken a raft of steps to support Chinese share markets after they lost more than 30 percent of their value since peaking in June.
The CSI300 index rose 1.2 percent, to 3,873.66 points at the end of the morning session, while the Shanghai Composite Index gained 1.3 percent, to 3,671.49 points.
China CSI300 stock index futures for August rose 4.5 percent, to 3,783.6, 90.06 points below the current value of the underlying index.
“The market is still very volatile … investors are likely to be quiet and see what the next step of the government will be,” said Patrick Yiu, a director of CASH Asset Management in Hong Kong.
“The overall market momentum is not likely to pick up anytime soon and the economy in China is still very weak,” added Yiu.
China’s Commerce Ministry said import growth is likely to remain at a low level on Tuesday, just a day after data from a private survey showed China’s factory activity shrank more than initially estimated in July.
The Hang Seng index dropped 0.1 percent, to 24,378.83 points.
