China stocks hit two-year peak but lose steam as markets wait on stimulus

Record ID: 1846756

  • Title: China stocks hit two-year peak but lose steam as markets wait on stimulus
  • Date: 8th October 2024
  • Summary: SHANGHAI, CHINA (OCTOBER 8, 2024) (REUTERS) VARIOUS OF TRAFFIC MOVING NEAR SHANGHAI PEARL TOWER VARIOUS OF PEDESTRIAN FOOT BRIDGE WITH STOCK INFORMATION ON TICKER BOARD SINGAPORE (OCTOBER 8, 2024) (REUTERS) (SOUNDBITE) (English) SENIOR ECONOMIST AT NATIXIS, GARY NG, SAYING: “The surge in Shanghai and Shenzhen are probably just a result of a few days of holiday of catching
  • Embargoed: 22nd October 2024 10:15
  • Keywords: China Economy Jump Market Stock rally
  • Location: SHANGHAI, HONG KONG, CHINA / SINGAPORE
  • City: SHANGHAI, HONG KONG, CHINA / SINGAPORE
  • Country: China
  • Topics: Asia / Pacific,Economic Events,Equities Markets
  • Reuters ID: LVA001011608102024RP1
  • Aspect Ratio: 16:9
  • Story Text:China's stock markets surged after a week-long break, reaching their highest levels in over two years at the open on Tuesday (October 8), but lost steam after officials failed to inspire confidence in stimulus plans intended to turnaround a sputtering economy.
    The Shanghai Composite closed 4.6% higher, and the blue-chip CSI300 rose 5.9%. These gains were significant but fell short of the early surge of over 10% during a rollercoaster day when turnover hit a record 3.45 trillion yuan ($489 billion).
    Hong Kong's benchmark Hang Seng Index dropped more than 9% as traders sold off shares after recent sharp gains, closing at 20,926.79—its heaviest fall since 2008.
    China's economic planner chairman Zheng Shanjie told reporters the country was 'fully confident' of achieving economic targets for 2024 and would pull forward 200 billion yuan from next year's budget to spend on investment projects and support local governments.
    But his failure to detail sufficiently big or new measures rekindled market doubts about Beijing's commitment to ensuring the world's second-largest economy can climb out of its most serious slump since the global pandemic and reach 5% growth.
    “What is uncertain also is about how effective will these policies be and whether there will actually be real improvement in the real estate market,” said Gary Ng, senior economist at Natixis in Singapore.
    "It will need further evidence to help investors regain their confidence," Ng added.
    (Production: Joyce Zhou, Nicoco Chan)
  • Copyright Holder: REUTERS
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