Chinese equities rebound after markets regulator offers support

Smaller Chinese companies continue to underperform their larger peers as investors bet that any government support will disproportionately benefit the country’s big corporations.

China’s CSI 1000 index, which includes more small-cap companies, fell 1.3 per cent on Tuesday, the eighth consecutive day of declines.

The CSI 300, which includes more large-cap companies, was up 0.6 per cent. The Hang Seng China Enterprises index, which also includes larger state-owned and privately-owned corporations, rose 1 per cent.

China’s government has in recent weeks vowed to provide more support for the country’s stock markets, which has experienced an extensive sell-off amid a property downturn and weak investor sentiment.