China stocks party starts to fizzle as markets wait on stimulus

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China,Stocks,Equities

SHANGHAI: China's runaway stocks rally began losing steam on Tuesday and Hong Kong shares slumped as officials disappointed markets by providing few specific details on plans to bolster China's slowing economy.

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The Shanghai Composite was up 3.1% in afternoon trade and the blue-chip CSI300 rose 4%, having earlier surged as much as 10.1% and 10.8% respectively. Hong Kong's Hang Seng, catapulted to be the top-performing major market this year aided by blistering gains in recent sessions, slid 7.7%. "It is likely we see markets consolidating and digesting what has already been announced, which arguably is meaningful, but not quite enough to satiate lofty expectations."

In Hong Kong, however, mainland property developers fell 11%, which if sustained would make for one of its largest percentage declines in years, though analysts said technical reasons were probably behind the selling.

 

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