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.

A stock market rally in China has fizzled out as a highly-anticipated announcement on plans to boost the country's ailing economy disappointed investors. Shares had jumped by more than 10% as trading restarted after the Golden Week holiday but fell back after a news conference by the country's economic planners.

A rally in onshore Chinese stocks on their return from a week-long holiday fizzled as traders questioned Beijing’s resolve to add more stimulus. Shares in Hong Kong tumbled.