The government has fired up investors by encouraging banks to lend more to buyers of stock and real estate, but officials refrained on Tuesday from promising more stimulus.

A rally in onshore Chinese stocks on their return from a week-long holiday cooled as traders questioned Beijing’s resolve to add more stimulus. Shares in Hong Kong tumbled.

A stock market rally in China has fizzled out as a highly-anticipated announcement on plans to boost the country's ailing economy disappointed investors. Shares had jumped by more than 10% as trading restarted after the Golden Week holiday but fell back after a news conference by the country's economic planners.

Chinese chip stocks gained $13 billion on Monday as traders expect Beijing to extend stimulus support to the semiconductor industry on Tuesday.

Goldman Sachs has upgraded its expectations for Chinese stocks, telling investors that shares could go a further 20 per cent higher after a historic rally following Beijing’s pledge to do more to stimulate the economy.