Stock market Illustration: VCG

China's stock markets rallied strongly in morning trading session on Tuesday, with over 10 billion yuan ($1.4 billion) of overseas capital flowing into the mainland market within about half an hour after opening, buoyed by a package of pro-growth stimulus policies announced by the government.

On Monday, a meeting of the Political Bureau of the CPC Central Committee vowed to ramp up counter-cyclical macro policy support and to strive for high-quality and "reasonable levels of growth" in the second half of the year, as the Chinese economy is facing some headwinds in post-pandemic recovery.

The Shanghai Composite Index opened up 1.18 percent, while the Shenzhen Component Index rose 1.5 percent, and the Nasdaq-like ChiNext Index surged 1.68 percent.

Financial services and real estate-related stocks led the rally, after the much-anticipated and important CPC politburo meeting pledged to stimulate the vitality of domestic capital market and "adjust and optimize previous policies in a timely manner" in order to bolster a weak property sector, according to Xinhua News Agency.

Notable performances among real estate stocks include Gemdale Corporation, Jinke Realestate Group and a dozen other real estate developers, with their prices reaching their daily limit of 10 percent gains, while many others rose over 5 percent.

In addition to real estate and financial services stocks leading the rally, other sectors also saw significant gains including home appliances, vehicle manufacturing and construction materials-related companies. 

And, Hong Kong stock market's Hang Seng Index saw a notable 3.14 percent gain as of press time, with the Hang Seng Tech Index widens its gains to over 4.5 percent. Electric vehicle maker NIO saw its share price up 8.77 percent, Geely gained nealy 7 percent. Alibaba shares rose 4.69 percent.

Both onshore and offshore yuan against the US dollar have surged above the 7.15 yuan per dollar mark, experiencing a significant gain of nearly 400 points intraday.

The FTSE China A50 index futures surge over 3 percent intraday, while the net inflow of northbound funds - money flow into Chinese mainland stock market through Hong Kong - exceeded 10 billion yuan in about half an hour after the opening at 9:30 am, with Shanghai Stock Connect seeing a net inflow of over 5.5 billion yuan and Shenzhen Stock Connect witnessing a net inflow of over 4.4 billion yuan.

The A-share markets staged a considerable growth on Tuesday, with all three leading indexes ending the day gaining more than 2 percent. 

At the close, the Shanghai Composite Index was up 2.13 percent, the Shenzhen Component Index was up 2.54 percent and the ChiNext Index was up 2.14 percent. Net inflow of northbound funds to the mainland markets reached 18.98 billion yuan , a new daily high for the year.

A total of 4,414 out of 5,085 A-shares saw gains during the day.

Global Times