Chinese stocks rose on Tuesday as Beijing pledged to speed up measures to boost the Chinese economy.

Hong Kong Hang Seng Index rose more than 3%, China’s tech-heavy ChiNext rose 1.8% in Asia Tuesday morning and the Shanghai Composite Index rose 1.81%.

Chinese developers Country garden and Desire increased by 14.3% and 20.7%. Sunac increased by 12.5%, China Vanke increased by 11.02% and China overseas land and investment increased by 11.39%.

the day before, Chinese real estate stocks plunged to renewed debt concerns. In August 2020, the Chinese government cracked down on the indebtedness of the real estate sector.

The rally in stocks comes after China’s top leaders pledged Monday to increase policy support to boost domestic consumption as the post-Covid recovery has been slower than expected.

According to official data China’s gross domestic product rose 6.3% year-on-year in the second quarter., which is a worse result than the 7.3% economist predicted. That was 0.8% growth from the first quarter and was slower than the 2.2% quarter-on-quarter pace seen in the January-March period.

China’s top officials met on Monday for the much-anticipated Politburo meeting and hinted at moves to “adjust and optimize” asset policy in what management called a “painful” economic recovery.

State press agency Xinhua cited the 24-member Politburo as saying “the economy is facing new difficulties and challenges”. This is mainly due to weak domestic demand, operational challenges for companies as well as a “gloomy and difficult external environment,” the company said.

“The meeting emphasized the need to actively expand domestic demand, fully play the fundamental role of consumption in driving economic growth, expand consumption by increasing people’s incomes,” Xinhua said.

“It is necessary to increase the consumption of automobiles, electronic products and home furnishings and to encourage the consumption of services such as sports, leisure and cultural tourism,” the report said.

Shares of the Internet giants listed in Hong Kong rose on Tuesday. Alibaba shares rose 4.7%. Tencent increased by almost 4%. Meituan and Baidu shares were higher by 5.7%, or 6.8%.

In the area of ​​electric vehicles, Xpeng rose by 11%, Li Car increased by 4.15% and DWELLING increased by 2%.

“This is a reaffirmation that [Chinese] policymakers have heard the market’s concerns about more support needed for the domestic economy,” Xiaolin Chen, head of KraneShares International, told CNBC.Asia street signs“Tuesday.

“They want to reach the target of 5% of GDP for this year. The first thing they need to do is to create jobs for China’s workforce,” Chen said.

“I certainly see some encouraging language coming out of the statement that has removed a lot of the concerns of people who have been heavily focused on the real estate market, jobs, private investment and so on. So far, the language has been encouraging.”