SHANGHAI: Stocks in China rebounded on Tuesday, with investor interest shifting back to small caps as a slump in top trainmakers China CNR and CSR Corp soured sentiment toward infrastructure stocks.
Hong Kong shares also rose, encouraged by signs that more mainland money was flowing into the city’s markets.
The CSI300 index rose 1.4 percent to 4,584.51 points by the end of the morning session, while the Shanghai Composite Index gained 0.9 percent to 4,253.55 points.
The Hang Seng index added 2.1 percent to 27,669.75, while The Hong Kong China Enterprises Index gained 2.1 percent to 14,406.57.
Major indexes had tumbled on Monday as fears of regulatory crackdowns outweighed the central bank’s latest steps to shore up the slowing economy.
State media reported on Tuesday that China’s parliament had began reviewing draft changes to the Securities Law, paving way for a switch to a “registration system” for initial public offerings (IPO), from the current approval process.
