American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

China stock surge stumbles as investors unimpressed by economic stimulus

by admin October 8, 2024
October 8, 2024
China stock surge stumbles as investors unimpressed by economic stimulus

After a strong start, with shares surging over 10% following the Golden Week holiday, Chinese stocks reversed course as the much-anticipated news conference failed to deliver substantial details about boosting the country’s sluggish economy.

In a session marked by volatility, the Shanghai Composite Index in mainland China climbed about 5% by late morning, while Hong Kong’s Hang Seng Index tumbled 5%, reflecting a split in investor sentiment.

Unmet expectations from China’s economic planners

Market participants had eagerly awaited further insights into the Chinese government’s plans to reignite economic growth.

However, the National Development and Reform Commission (NDRC) offered little clarity.

NDRC Chairman Zheng Shanjie attempted to strike a confident tone, asserting that China will achieve its economic and social targets for the year.

However, he acknowledged mounting pressures, stating, “The downward pressures on China’s economy are also increasing.”

Zheng also confirmed plans to allocate 200 billion yuan ($28bn; £21.5bn) for spending and investment projects by the year’s end.

Despite the announcement, investors were left disappointed by the absence of a more robust fiscal stimulus package.

Market reaction to stimulus shortfall

“The market really expected more,” said Alicia Garcia-Herrero, chief economist for the Asia Pacific region at Natixis.

“The correction will be even stronger if the data on the Golden Week in terms of consumption is weak,” she added, emphasizing the market’s reaction to the perceived lack of tangible measures.

Garcia-Herrero also critiqued the government’s timing, stating, “I would not have organized a press conference not to announce anything new.”

Growing concerns over China’s economic trajectory

China’s leadership has been under pressure to revive confidence in the world’s second-largest economy as fears mount that the country might fall short of its 5% annual growth target.

In recent months, authorities have unveiled a range of measures aimed at shoring up the economy, including support for the embattled property sector, stock market interventions, direct financial aid to low-income households, and increased government spending.

However, some economists remain skeptical about whether these moves will be sufficient to tackle the deep-rooted issues facing China’s economy.

Many argue that the country needs broader structural reforms to achieve sustainable, long-term growth.

China’s economic expansion has been decelerating, weighed down by a struggling real estate market, deflationary trends, and other significant challenges.

While the government’s stimulus efforts signal a commitment to addressing these concerns, the lack of clear and decisive action has left many investors cautious about the future trajectory of the economy.

The post China stock surge stumbles as investors unimpressed by economic stimulus appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Here’s why I’d avoid the DGRO ETF and buy VOO instead
next post
TSLY and NVDY ETFs brace for key events: are they good buys?

Related Posts

Europe markets open: mixed start eyed as investors...

May 7, 2025

European stocks gain on auto tariff hopes, but...

April 15, 2025

Europe markets open: Stocks rebound, CAC 40 up...

August 27, 2025

Asia markets mixed as China trade data offsets...

July 14, 2025

Billionaires, including Warren Buffett, invest in Kroger stock:...

September 13, 2024

PayPal stock price analysis: the sky is the...

November 8, 2024

More travelers risk booking hotel rooms on sites...

February 24, 2024

What next for the Scottish Mortgage share price...

September 3, 2025

Louvre Museum robbery shocks France as eight crown...

October 20, 2025

Dave & Buster’s plan to allow betting on...

May 9, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • Bulgaria plans for continuous oil supply for Lukoil-owned refinery after US sanctions

      October 26, 2025
    • Apple Q4 earnings preview: here’s what to expect

      October 26, 2025
    • France’s offshore wind ambitions stalled by political turmoil

      October 26, 2025
    • Europe bulletin: Zelensky calls for more weapons, Russia warns against EU sanctions

      October 26, 2025
    • US digest: Jeffries endorses Mamdani, Ford’s stock surge, US sanctions Colombian president

      October 26, 2025

    Categories

    • Business (4,373)
    • Investing (3,014)
    • Latest News (2,103)
    • Politics (1,541)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved