The stock market in Mainland China saw a significant increase of over four percent on Tuesday. However, the initial excitement waned as traders were disappointed by the absence of new stimulus measures from Beijing. The Shanghai Composite Index, which had a strong start with over a 10 percent increase, closed up 4.59 percent. Similarly, the Shenzhen Composite Index rose by 8.89 percent. Investors were hopeful for more details on the growth measures announced previously but were left wanting.
Officials have been implementing various measures to boost the economy, particularly focusing on the struggling property sector. Despite the high expectations for a news conference following a week-long holiday, the lack of substantial announcements led to a decline in market enthusiasm. The head of China’s National Development and Reform Commission expressed confidence in achieving a growth target of around five percent this year.
Analysts had anticipated significant stimulus announcements during the press briefing but were underwhelmed by the outcome. The event was likened to a “pop gun” rather than the anticipated “stimulus bazooka.”