Chinese stocks fall 10% from October peak

Stocks fell Chinese in early trading Wednesday, a sign of growing disappointment over the pace of stimulus rollout.

The CSI 300 index fell 1.3%, taking losses from a peak on October 8 to more than 10%. The index of Chinese stocks listed in Hong Kong fell 1%.

The market has been on a roller-coaster ride since late September, when authorities launched a series of stimulus measures, triggering a wave of optimism that quickly cooled.

As Beijing takes its time detailing its fiscal spending plan, doubts are growing whether the authorities are willing to keep aid going with a view to changing the situation. Economy And markets.

Extreme variations

“The historic momentum rally that occurred at the end of September is certainly not sustainable, and given how quickly the markets are rising, it could decline just as quickly,” said Marvin Chen, a strategist at Bloomberg Intelligence.

“The overall policy measures are moving in the right direction at a faster pace, and when things calm down, Chinese stocks may still trade in a higher range than before,” he said.

While a 10% decline would push the benchmark index into a technical correction, the massive volatility sweeping Chinese stocks recently has made such milestones all the more important. The index rose more than 30% in about three weeks from mid-September, before losing momentum.

These fluctuations have Chinese investors wondering if the rally has already peaked, or if there is room for further gains.

The next major event is a press conference by the Minister of Housing on Thursday, where authorities can provide more details about measures to support the country’s ailing real estate sector and to stimulate economic growth. Any disappointment from this event can make selling more intense.

Minister Ni Hong will be the latest top economic official to speak publicly about the government’s move towards sustainable growth, following People’s Bank of China Governor Pan Jongxin, Finance Minister Lan Fu’an, and the head of a planning agency the country’s economic, Cheng Shanji.