China's Market Struggles: Stimulus Moves and Unsettled Sentiments

China's stock markets show volatility amid stimulus promises, particularly in the property sector. Despite government efforts to stabilize the economy and announcements to boost nominal growth, investor sentiment remains cautious. Key data points show mixed economic signals, prompting concern over deflationary pressures.

China's stock markets met with volatility in early trade Monday as new stimulus measures nudged property shares upwards, falling short of reviving last month's optimism.

The Hang Seng Index saw fluctuation, dipping as much as 2%, while the Shanghai Composite and CSI300 opened strong before leveling off. Real estate and construction sub-indexes reported a 2% rise.

Finance Minister Lan Foan reiterated government support, although specifics were scarce, leaving investors skeptical despite stabilizing effects on mainland markets. Analysts from Goldman Sachs expect new measures to boost GDP growth forecasts up to 4.7% by 2025.

(With inputs from agencies.)