Hong Kong and Shanghai stocks soared at the open on Tuesday after China's leadership said it would take a more "relaxed" approach to monetary policy.

The Hang Seng Index jumped 3.2 percent, or 655 points, to 21,070, and the Shanghai Composite Index climbed 2.6 percent, or 87 points, to 3,490.

This followed Beijing's announcement of a looser monetary policy and a more proactive fiscal policy after a Politburo meeting on Monday, marking a shift from the country's rather prudent policy stance since 2011.

Alain Groshens, the CEO of SystematicEdge, told RTHK's Money Talk programme that he believes the move will be a game changer.

"China is getting ready for the US to impose tariffs on China. There could be an additional maybe 10 percent, maybe up to 60 percent," he said.

"So the objective of these measures is really to boost Chinese domestic consumption, but also to stabilise the real estate market and the capital market... There will be a strong impact on the Chinese equity market."

Groshens added that he expects China to achieve its growth target next year thanks to the new fiscal stimulus measures, projecting around 4.5 percent growth.

Richard Harris, CEO of Port Shelter Investment Management, told the same programme that he thinks China will focus more on fiscal policy and government spending going forward.

"I think rates are reasonably low, but I think they will really try and focus more on the fiscal side, how government directs its spending," he said.

"But the one thing that international observers have been critical of is the fact that a lot of this stimulus hasn't gone down to the consumer itself. I think people would quite like to see consumption vouchers, you know how much we love them in Hong Kong."

Harris said while Beijing has been trying to stimulate the economy for over a year, many investors have been "asleep at the wheel" in noticing these efforts.

He said he hopes to see more direct support for people living in poverty, and consumption vouchers to boost domestic spending.

Meanwhile, mainland cosmetics giant Mao Geping jumped more than 70 percent on its first day of trading in Hong Kong. (AFP/RTHK)