China stocks struggle despite cabinet's pledge to stabilise market

China stocks struggled for a clear direction on Tuesday, hovering near a five-year low touched in the previous session, even after the country's cabinet pledged to take more effective measures to stabilise market confidence. The blue-chip CSI 300 Index slipped 0.3%, while the Hang Seng Index rose 0.5% at market open on Tuesday.

China stocks struggled for a clear direction on Tuesday, hovering near a five-year low touched in the previous session, even after the country's cabinet pledged to take more effective measures to stabilise market confidence. The Shanghai Composite Index traded below the psychologically important 2,800-point mark amid relentless foreign outflows and a surge in short-selling that pummelled confidence, already dented by the region's creaking economy.

The cabinet meeting, chaired by Premier Li Qiang, said on Monday it will step up medium- and long-term fund injections in the capital market to strengthen stability as well as promote healthy development. The blue-chip CSI 300 Index slipped 0.3%, while the Hang Seng Index rose 0.5% at market open on Tuesday.