HONG KONG — Stocks in China slumped on Wednesday, with Shanghai’s benchmark down 6.6% and Hong Kong’s losing 1.5% as investors dumped shares to lock in profits after recent rallies driven by hopes for major economic stimulus.plans from officials in Beijing have failed to live up to lofty expectations that had built up after the central bank and other government agencies announced various policies to help revive the ailing property market and spur faster economic growth.
“A lack of new stimulus has been the cause of disappointment, with many market participants hoping that its fiscal policies will follow in the footstep of the financial ‘bazooka’ delivered in late-September, but there was clearly a step-down in yesterday’s announcement,” Yeap Jun Rong of IG said in a commentary.
Australia’s S&P/ASX 200 gained 0.1% at 8,187.40. South Korea’s markets were closed for a public holiday. When Treasurys are paying higher yields, investors generally become less willing to pay very high prices for stocks and other investments. And Treasury yields had been storming higher over the last week following a suite of reports showing the U.S. economy remains healthier than expected.than forecast, raise hopes that the economy will avoid a recession.