(Bloomberg) — Chinese stocks ended Wednesday higher, though paring from earlier gains as worries linger about whether a host of support measures announced Tuesday would turn around the economy.

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The onshore benchmark CSI 300 Index rose 1.5% at close after climbing as much as 3.4% on the day. The gauge remained 0.9% lower for the year. The advance in the Hang Seng China Enterprises Index also was slashed to 0.5% from its earlier ascent to 3.4%.

The weakening momentum underscored investors’ skepticism about Beijing’s capability to revive the market and economy, given the absence of more details on policy implementation. The paring came despite what appears to be enhanced state support, with the turnover in some exchange-traded funds favored by the sovereign fund seeing spikes in inflows.

“The policies don’t really address the root problems facing the real economy,” said Shen Meng, a director at Beijing-based investment bank Chanson & Co. “They at most provided bears with an opportunity to cash in and may create asset bubbles in the longer run.”

With the previous rallies this year fizzling, market watchers sounded caution despite a blitz of stimulus measures announced Tuesday. The benchmark’s recent gains — the CSI 300 index rose for six straight days — may be fleeting if policymakers fail to address the country’s long-standing problems.

Chinese equities have been trapped in a start-stop cycle of gains and losses for most of this year, as the government’s piecemeal approach to reviving the market has resulted only in brief rebounds.

The rally in Hong Kong stocks may have been driven by short cover, according to JPMorgan Chase & Co. strategists including Wendy Liu. The short sales ratio as a percentage of the market turnover dipped to 13.6% on Tuesday, one standard deviation below the average since 2016, indicating many shorts have been covered, they said.

Still, investors largely applauded the comprehensiveness of the stimulus package, which included liquidity support for the stock market and a policy rate cut. The policies also fanned hopes that the government — with the Politburo set to meet ahead of a week-long annual holiday starting Oct. 1 — may be readying ammunition to address deep-rooted issues, such as weak consumer confidence.

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The People’s Bank of China 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 later 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.”

–With assistance from Charlotte Yang and Cecile Vannucci.

(Updates with closing prices and quote in fourth paragraph.)

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