Chinese stocks fluctuated on Wednesday, reflecting rising disappointment over the slow pace of stimulus measures. The CSI 300 Index fell 0.3%, briefly dipping as much as 1.3%, bringing total declines from its October 8 high to over 10%, signaling a potential technical correction.
The market has experienced significant volatility since late September, when a series of stimulus measures from the People’s Bank of China initially boosted investor optimism. However, the lack of detailed follow-through on fiscal spending has led to growing skepticism about the government’s commitment to reviving the slowing economy.
While the CSI 300 soared more than 30% over three weeks in mid-September, the rally has lost momentum, and investors remain divided on whether the market has peaked or if there is still room for further gains.
The next crucial moment for the market will be on Thursday, when China’s housing minister, Ni Hong, is expected to provide more details on measures to support the country's struggling property sector. Any disappointment from the briefing could trigger further selling.
With recent press conferences from senior officials like Pan Gongsheng, Lan Fo'an, and Zheng Shanjie failing to impress, some analysts, like Vey-Sern Ling from Union Bancaire Privée, caution against expecting too much from the upcoming housing ministry update.
Chinese stocks have been caught in a roller-coaster ride, and while some believe policy actions are moving in the right direction, the lack of concrete action continues to weigh on market sentiment.
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