BEIJING: Chinese stocks soared out of the open Monday after a week of panic selloffs, as China’s government and central bank launched a wave of drastic policies over the weekend to help save the markets, including the People’s Bank of China vowing “liquidity support” to the state-backed margin-finance entity, as well as a reported suspension of initial public offerings. The Shanghai Composite Index SHCOMP, +2.75% opened 7.8% higher, and although it quickly trimmed those gains, it remained 3.7% an hour into the session. The index had slumped more than 12% in the previous week. However, Hong Kong stocks reversed their own opening gains and turned lower, as deepening concerns from the Greek referendum rejecting that nation’s rescue program outweighed a strong rebound in the mainland Chinese markets. The Hang Seng Index HSI, -2.65% fell 0.8%, with the mainland-China-tracking Hang Seng China Enterprises Index HSCEI, -2.61% down 0.5%. HSBC Holdings PLC 0005, -2.16% HSBC, +1.10% HSBA, -0.88% declined 1.8%, and Standard Chartered PLC 2888, -2.31% STAN, -2.14% — which, like HSBC, is based in Europe — lost 2.3%. Exchange-operator Hong Kong Exchange & Clearing Ltd. 0388, -9.85% HKXCF, -4.82% sank 5.7%, after Goldman Sachs reportedly downgraded its rating on the stock to sell and slashed its target price. Similarly, Chinese computer maker Lenovo Group Ltd. 0992, -10.92% LNVGF, -1.82% tumbled 6.7% as UBS lowered its target price of on the shares. Other decliners included index heavyweight Tencent Holdings Ltd. 0700, -5.87% TCEHY, +1.09% which slid 3.5%, and among the real-estate stocks, China Resources Land Ltd. 1109, -5.87% CRBJF, +0.62% and China Overseas Land & Investment Ltd. 0688, -4.26% CAOVF, -4.36% — both Hang Seng constituents — sagged more than 4% each.
