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Chinese Market Optimism Fizzles After Disappointing Stimulus Package

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Stimulus Package,Chinese Economy,Stock Market Drop

Initial optimism surrounding a potential Chinese stimulus package faded quickly after Beijing's announcement fell short of expectations. Investors reacted negatively, sending key indexes plummeting as concerns about the country's economic recovery persist.

BEIJING — A wave of optimism swept Chinese markets recently when Beijing announced a stimulus package many hoped would pave the way for a wave of investment to help fuel a recovery for the world’s second-largest economy. Traders rushed to buy Chinese stocks, sending the top Shanghai and Hong Kong indexes soaring.

Its broader financial lethargy and this week’s market turmoil will hardly be welcomed by Beijing. But what do this week’s events mean for ordinary Chinese citizens? For Fu, a 24-year-old graduate student in Beijing, this month’s paroxysms don’t change much on the ground. “Chinese people’s money isn’t really in the stock market. They tend to prefer saving,” said Beijing-based Fu, who declined to give his first name out of fear of repercussions for criticizing government policy.

 

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