Enthusiasm over a stimulus-driven equity surge is cooling after the lack of any further major initiatives at a key policy meeting Tuesday disappointed investors. A growing number of strategists and fund mangers have expressed skepticism, saying Beijing needs to back up its spending pledges with real money, while some others have cautioned the rally has gone too far too fast as benchmark indexes surged over 30% in a matter of days.
Chinese stocks listed onshore headed for their first decline in 11 days as traders grow impatient with the pace of Beijing’s stimulus measures, with sentiment also hurt by weak holiday-spending data.
The benchmark CSI 300 Index slid as much as 7.4%, wiping out its gain of 5.9% amid frenzied trading on Tuesday when mainland markets reopened after the Golden Week holiday. An index of Chinese stocks listed in Hong Kong fell further after tumbling 10% on Tuesday.
