(Bloomberg) -- China's soaring technology stocks can't quite get over the line.
The ChiNext Index is struggling to top its closing peak from July, which was the highest level since November 2015. The gauge was briefly above that level on Tuesday before faltering, closing 1.3% lower.
Having chalked up a nearly 60% gain this year, authorities want the performance to be sustained as the nation embarks upon sweeping market reforms. Eventually equities on the ChiNext board will be subject to 20% daily limits when the first initial public offerings under relaxed rules begin trading, double the current limit. Two firms started subscriptions for their ChiNext IPOs under the new regulations on Tuesday, meaning a wider trading cap is imminent.
The tech-dominated measure has surged to become this year's best performer in Asia Pacific as investors pile into companies seen to benefit from China's drive to champion homegrown technology. Recent pressure from the U.S. on Chinese-owned software firms has fueled expectations of further support from Beijing.
For now, the rally is on solid ground. Turnover on domestic exchanges has stayed above 1 trillion yuan ($143 billion) for five straight sessions, while local traders added leverage for six days through Monday, boosting margin debt to the highest level since July 2015.
©2020 Bloomberg L.P.
With assistance from Bloomberg
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