China stocks edge up on policy support pledge

SHANGHAI, Sept 29 (Reuters) - China ‌stocks edged ​up ​on Tuesday, after the country's cabinet pledged to step up counter-cyclical policy support to address rising economic ‌strains, though trading remained thin ahead of an upcoming ⁠holiday. Hong Kong shares fell.

** China's blue-chip CSI300 Index was roughly flat ‌by the lunch break, while ‌the Shanghai Composite Index gained 0.1%. Hong Kong benchmark Hang Seng was down 0.6%.

** China's real estate developers led gains ​onshore, with Vanke shares up nearly 8%, after the State Council meeting vowed to roll out measures to stabilise ⁠the property market.

** "We expect policymakers to further broaden the use of housing provident funds ​to slightly reduce weighted-average mortgage rates, and more large cities to introduce local housing easing measures," analysts ​at Goldman Sachs said in a ‌note.

** Sentiment among AI component makers rebounded slightly, with the 5G Communication Index up 0.8% and ⁠the tech-focused STAR50 Index rising 0.6%.

** Rising US Treasury yields, coupled with insufficient liquidity ahead of the week-long holiday, weighed on the market ⁠sentiment, analysts at Northeast Securities said in a note.

** "However, after the sharp ​declines, with negative sentiment quickly running its course, quality assets have become more attractively valued again," the analysts said.

** China's week-long National Day holiday ‌will start on Thursday, with onshore trading resuming on October 8.

** The Hang Seng Innovative Drug ‌Index rose 3.3%.

** Tech majors listed in Hong Kong fell ⁠1.4%.

** Shares of fast-fashion platform ‌Shein Global Holdings ​fell to their lowest level since the firm's debut on September 1.

(Reporting by Shanghai Newsroom; Editing by Janane ‌Venkatraman)

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