Investors in Hong Kong have bet a record amount on exchange-traded funds that profit when stocks decline, showing how quickly sentiment is shifting following a breakneck rally.

The Chinese central bank’s liquidity boosting tool sparks a 2.5 per cent surge in Hong Kong’s Hang Seng Index.

Chinese shares soared to two-year highs in frenzied trade on Tuesday, extending a blistering rally as mainland markets reopened after a week-long break, while Hong Kong shares slid as investors walked back some of the stimulus excitement.

A key stock market index in Hong Kong saw the biggest single-day drop since the financial crisis on Tuesday. The Hang Seng index fell by -2172.99 (-9.41 percent) on Tuesday.

The CSI 300 Index pared gains after registering a record intraday jump while the Hang Seng Index slumped the most since 2008.

U.S. stocks rebounded Tuesday after falling oil prices released some of the pressure that had built up on the market. The Standard & Poor's 500 rallied 1% to claw back all of its loss from the day before.

U.S. stocks are steadying themselves on Tuesday as falling oil prices release some of the pressure that’s built up on the market. The S&P 500 was 0.8% higher in afternoon trading and clawing back most of its loss from the day before.