Chinese stocks are rising as expectations for more economic stimulus rise

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Chinese shares soared on Tuesday as investor expectations grew for more economic stimulus from Beijing.

The mainland’s blue-chip CSI 300 index opened up 10.8 percent after being closed for a week-long holiday since last Tuesday, before retreating slightly to trade 8 percent higher.

Chinese authorities will outline a series of fiscal measures on Tuesday morning to complement the monetary stimulus they launched in late September that sent Chinese stocks to a record rally.

Top officials of the National Development and Reform Commission, the state planning body, will present “a comprehensive set of incremental policies to firmly promote upward economic growth and structural optimization and continue to improve the development trend,” according to an official agenda.

Hong Kong’s Hang Seng index, which was open for most of last week, fell more than 4 percent in the morning session.

“Now that the mainland is open, people are selling Hong Kong to finance the purchase of the real deal (mainland Chinese stocks),” said an Asian trader who asked not to be identified.

This is a development story