China Stocks Falter on Stimulus Uncertainty
Mainland China stocks opened lower, potentially ending a 10-day surge, as confidence in stimulus plans wanes. The Shanghai Composite and CSI300 Index saw significant drops. Hong Kong's Hang Seng showed resilience while markets await anticipated fiscal measures. Offshore, China-related futures rose slightly.
- Country:
- China
Mainland China stocks sharply declined on Wednesday, threatening to break a recent 10-day winning streak as investor confidence in government-led stimulus initiatives faltered. The Shanghai Composite index slipped by 4.6%, and the blue-chip CSI300 Index fell by over 5%, signaling market unease.
After a choppy session on Tuesday, which saw record trading volumes post-holiday, the A-share market remains volatile. Meanwhile, Hong Kong's Hang Seng index, having experienced a remarkable rally recently, rose about 1% in early trading, showcasing its robust performance this year.
Market participants are eagerly waiting for a fiscal stimulus package, estimated at 2-3 trillion yuan. Alvin Tan of RBC Capital Markets stressed the importance of this anticipated announcement, noting that investor optimism hinges on a significant monetary boost. Overseas, Singapore-traded FTSE China A50 futures climbed by approximately 2.3%.
(With inputs from agencies.)
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