(Bloomberg) -- Chinese stocks extended their gains on Wednesday as investors continued to bet that Beijing’s latest stimulus measures would help drive a market turnaround and kickstart the country’s sluggish economy.

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The onshore benchmark CSI 300 Index jumped as much as 3.4% and was on track to wipe out all of its losses for 2024, a rally that comes a day after authorities unveiled a series of measures to enhance liquidity support for the stock market, cut interest rates and eased home-buying rules. The Hang Seng China Enterprises Index rose as much as 3.4% following a 5.1% gain in the previous session.

The bounce today shows investors’ acknowledgment of policymakers’ sense of urgency as displayed in the comprehensiveness of the stimulus package. The policy blitz also fanned hopes that the government — with the Politburo set to meet ahead of a weeklong annual holiday starting Oct. 1 — may be readying ammunition to address other deep-rooted issues, such as weak consumer confidence.

The People’s Bank of China on Tuesday said it will set up a swap facility to allow securities firms, funds and insurance companies to tap its funds to purchase equities. The central bank is also weighing plans for a stock stabilization fund. The securities regulator also issued draft guidelines urging listed companies to boost investment returns.

“We believe these coordinated policy announcements could pave the way for further policy support and raise the possibility of an economic upcycle in 2025,” Chaoping Zhu, global market strategist at JP Morgan Asset Management, wrote in a note. “Combined with private sector companies that have improved their profit margin and corporate fundamentals, we do see value opportunities in Chinese equities, and diversification opportunities given the expensive markets around the world.”

The HSTECH Index, a measure of the 30 largest tech companies listed in Hong Kong, jumped as much as 3.8%, taking its gains to more than 20% from an August low. A Bloomberg Intelligence gauge of developer shares rallied as much as 5.1%.

--With assistance from Charlotte Yang.

(Updates with comment in fifth paragraph, other details.)

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