Shanghai stocks plunge over 4% as stimulus disappoints

Shanghai stocks plunge over 4% as stimulus disappoints

Hong Kong clawed back some of the 9% losses yesterday, its steepest drop since the 2008 financial crisis.

Shanghai Stock Exchange
Equities in China and Hong Kong surged over 20% after Beijing announced measures last month to boost the world’s second-largest economy. (Reuters pic)
HONG KONG:
Shanghai stocks tumbled more than 4% at the open Wednesday after racking up big gains a day earlier following a week-long break, but Hong Kong clawed back some of the losses of more than 9% it suffered.

The Shanghai Composite Index shed 4.54%, or 158.45 points, to 3,331.33, and the Shenzhen Composite Index on China’s second exchange, dropped 4.31%, or 90.51 points, to 2,008.26.

Both bourses saw big gains the day before but were well off their initial highs.

The Hang Seng Index gained 1.74%, or 363.25 points, to 21,290.04, having tanked more than 9% Tuesday, its biggest loss since the 2008 global financial crisis.

Equities in the mainland and Hong Kong rocketed after China last month began announcing measures aimed at boosting the world’s number two economy, piling on more than 20% each.

However, a much-anticipated news conference in Beijing on Tuesday – after the Golden Week break – left traders disappointed as officials refused to unveil more stimulus and provided scant detail on the measures already pledged.

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