Chinese Stocks Plummet Amid Stimulus Disappointment

Chinese stocks, alongside Hong Kong peers, saw significant declines as investors took profits following unmet expectations for stronger economic stimulus. This week's drop marked the largest since the COVID-19 outbreak. Markets were disappointed by the lack of new fiscal measures announced by Chinese officials.

Chinese stocks experienced a sharp decline on Wednesday, mirroring losses in Hong Kong, as investors chose to take profits after the recent rally. The downturn came amid dissatisfaction over absent robust stimulus initiatives aimed at reviving the economy.

On Wednesday, China's major benchmark indexes registered their most substantial daily losses since the outbreak of the COVID-19 pandemic. The Shanghai Composite index fell by 6.6% to 3,258.86 points, while the blue-chip CSI300 index dropped 7.1% to 3,955.98 points, both ending their 10-day winning streak.

Investors expressed disappointment after officials released limited details on Beijing's stimulus plans during the National Development and Reform Commission press conference. The market's anticipation of a significant fiscal stimulus has been instrumental in driving recent positive sentiment; however, the lack of substantive details has caused unease.

(With inputs from agencies.)