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STORY: China equity markets returned from a week-long holiday Tuesday, and promptly soared to two-year highs. The blue-chip CSI300 index jumped 10% in early trade, before settling back around 6% up by midday.Shanghai’s benchmark Composite index gained only slightly less. Tech stocks were among the top performers, with an index for chip firms surging 16%. It all comes after moves before the break, when policymakers announced their biggest package of stimulus measures since the pandemic. Prime Capital Financial Director of Investments Will McGough says it amounts to a big bet by Beijing: “It’s the year of the dragon, which symbolizes strength, wisdom, luck and prosperity. And I guess the Chinese decided that they wanted to apply that to their stock markets, so they cut rates on $5 trillion of mortgages. Their one-year policy, they cut that by the most ever, which was 30 basis points, from 2.3 to 2%. They’re giving cash handout to the poor, they’re injecting $142 billion of capital into their top banks.”Construction shares have been another sector to benefit, on prospects of more government support. And the stimulus spree may not be done yet, with authorities hinting at fiscal measures still to come. But the gains have been so sharp that some market-watchers are now urging caution. Bank of America analysts said in a note this week that the “buy everything” stage would soon be over. They said investors could soon choose to cash in their gains on assets like consumer and property stocks. It was also a very different story in Hong Kong on Tuesday, where the benchmark Hang Seng index had tumbled over 5% by lunchtime. However, one analyst said that was just a mix of profit taking and technical factors, saying sentiment in the city was also bullish.