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.Listen to the Here’s Why podcast on Apple,

China's stock rally could extend another 15% to 20%, Goldman Sachs says. China's equity indexes have jumped dramatically since Beijing announced major stimulus policies. Goldman highlighted still low valuations and diminishing risk as tailwinds for a continued rally.