China's Stock Market Gains Momentum Amid New Central Bank Policies

China stocks rose on Tuesday as financial institutions utilized the central bank's new policy tool to boost the equity market. The central bank's swap facility launched 50 billion yuan in assets to aid brokerages and fund companies. Investors remain cautious, but easing measures and strong Q3 economic growth provide optimism.

In a promising turn for China's stock market, shares extended gains on Tuesday with the assistance of new central bank policies. Local financial institutions are leveraging a recently introduced swap facility to inject additional funds into the equity market.

Under this initiative, the central bank began its first transactions on Monday, transferring 50 billion yuan in assets to brokerages, fund companies, and insurers. Notably, China International Capital Corporation has already made its first stock purchase through this tool. The CSI300 Index rose 0.6%, while the Shanghai Composite Index gained 0.5%.

Despite recent volatility, these developments offer investors hope. Although cautious about the policy's long-term effects, analysts point to easing measures and better-than-expected Q3 growth data as positive indicators. By sector, wind power and auto stocks outperformed substantially.

(With inputs from agencies.)