Bull statues are placed in font of screens showing the Hang Seng stock index and stock prices outside Exchange Square, in Hong Kong, China, August 18, 2023. REUTERS/Tyrone Siu/File Photo Purchase Licensing Rights
Published October 9, 2024
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SOURCE: www.reuters.com
RELATED: What’s Next For Chinese Stocks After Stimulus Rally Stumbles?
Peter Parks / AFP via Getty Image
Published October 9, 2024
Chinese stocks came under pressure on Tuesday after a disappointing update from the government tempered some of last month’s exuberance that propelled Chinese stocks out of a bear market in recent weeks.
The country’s economic planning agency said Tuesday it would accelerate some planned investments meant to help the country meet its 2024 growth goals but abstained from outlining new stimulus measures.1
Late last month, the Chinese government announced a spate of monetary stimulus measures including lowering banks’ reserve requirements, cutting interest rates, and supporting equity markets. The long-awaited package restored some investor confidence in China, prompting a massive rally. The CSI 300, an index of mainland China’s largest stocks, soared 25% in a week. Hong Kong’s Hang Seng index also advanced more than 25% to a 2-year high.
Investors were expecting more from Tuesday’s announcement. The CSI 300 jumped about 11% Tuesday morning as mainland markets reopened after a weeklong holiday, but pared its gains and closed up 5.9%. The Hang Seng tumbled more than 9% on Tuesday.
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SOURCE: www.investopedia.com
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