(Bloomberg) — Chinese stocks regained early gains after a long-awaited joint ministerial briefing on supporting the real estate market offered little new economic stimulus.
Most Read Articles on Bloomberg
The CSI300 index was down 0.1% as of 11:18 a.m., reversing a 1.3% rise. Bloomberg Intelligence’s China Development Stock Index fell more than 8%. The rise in the Hang Seng Chinese Enterprise Stock Index narrowed to less than 1%.
China will expand its program to support “whitelist” projects to 4 trillion yuan ($562 billion) from the approximately 2.23 trillion yuan already in place, Housing Minister Ni Hong said in his most concrete remarks at a press conference. mentioned in. It came after a newspaper run by the Ministry of Housing suggested that the Chinese government would “unleash a powerful combo of punches”, raising market expectations.
Market reaction suggests authorities face a high hurdle to satisfy traders and revive a sluggish rally. Skepticism is creeping back in as Beijing has failed to match the fiscal firepower that surprised the People’s Bank of China’s policy blitz in late September. Thursday’s briefing could end as another disappointment after announcements by the Treasury Department and state economic planners earlier this month caused market volatility on scant spending details.
“Equity investors are looking for big headline numbers to further push stock prices up, but the government needs to gradually bring the economy and housing market back to health,” said Beisaan Lin, managing director at Union Bancare Privy. We’re focusing on that,” he said. “As long as there is such a discrepancy in expectations, press conferences are bound to be disappointing.”
Economic data released Friday is expected to show the economy expanded 4.5% in the third quarter from a year ago, according to economists surveyed by Bloomberg. This is the lowest level since March 2023, intensifying debate over whether the stimulus measures announced so far are enough to turn around the moribund economy.
As the CSI300 index heads toward correction, some investors are waiting for the second leg of the rally to resume. For traders who have experienced many false dawns over the past few years, the slow recovery will seem like deja vu.
“We can’t say that no new policy measures have been introduced, but it does give the market a sense that real progress has been made,” said Shen Meng, director of Beijing-based specialist investment bank Chanson & Company. I can hardly do it.” Investor confidence continues to contract and sentiment remains low, which will put increased pressure on the Chinese government to increase policy support in the future. ”
story continues
Most Read Articles on Bloomberg Businessweek
©2024 Bloomberg LP
