“Chinese stock markets fell on Monday, November 11, after the announced fiscal stimulus package from the government instead of supporting the economy caused concern among investors.”, — write: www.epravda.com.ua
Chinese stock markets fell on Monday, November 11, after the announced fiscal stimulus package from the government instead of supporting the economy caused concern among investors.
About this informs Financial Times.
Hong Kong’s Hang Seng index fell 2.1%, as did the mainland’s CSI 300. Brent crude also fell 0.4% to $73.50 a barrel on uncertainty over demand from China.
Chinese shares rose last week on expectations of more details on Beijing’s fiscal plan, but a lack of measures to stimulate consumption was disappointing, analysts said.
Traders in Hong Kong began selling off Chinese stocks, showing skepticism about the effectiveness of the new package. The value of six-month options on the Hang Seng China Enterprises index fell by 8.5%.
Finance Minister Lan Foan announced the study of additional measures to recapitalize banks and stimulate consumption, but specific steps have not yet been announced.
The yuan also fell to an annual low of 7.18 yuan per dollar. This reflects growing pressure on the national currency due to investment outflows and market expectations of possible trade tensions with the US.
We will remind:
China presented 10 trillion yuan ($1.40 trillion) debt package to ease local government financial difficulties and stabilize weak economic growth.
Chinese exports in October increased at the fastest pace in two years as factories rushed to move inventories to key markets in anticipation of further tariffs from the United States and the European Union.