Investing.com-- Chinese stocks are likely to experience increased volatility in the coming days as investors digest the government’s recent round of stimulus, UBS analysts said, while flagging potential risks from a disappointing stimulus package.indexes clocked wild swings in recent sessions after the government announced plans to unlock more fiscal stimulus for the economy. But a lack of crucial details on the planned measures, especially their timing and scale- disappointed some investors.
“Investors remain highly sensitive to any policy signals, and stand ready to move quickly in response. If Beijing’s fiscal package falls short of expectations or if policymakers stay quiet in the coming weeks, we could see the market take another hit,” UBS analysts said. China’s Ministry of Finance over the weekend outlined plans for a slew of fiscal measures, including local government bond issuances, increased fiscal spending and some supportive measures for the property market.
The MoF also did not provide any details on how and when the planned fiscal measures will be implemented, raising more uncertainty.