Shares in China slumped overnight as details of economic stimulus plans from officials in Beijing failed to live up to investors’ expectations.
The Shanghai Composite (000001.SS) was 6.6% down by the end of the session and the The Shenzhen Composite Index on China’s second exchange tumbled 8.1%, its sharpest fall since May 1997.
Elsewhere, the Nikkei (^N225) rose 0.9% on the day in Japan, while the Hang Seng (^HSI) fell 1.4% in Hong Kong. This decline followed a plunge of over 9% on Tuesday, its worst since 2008, as traders sold off shares after recent rallies.
South Korea’s markets were closed for a public holiday.
Stephen Innes of SPI Asset Management said:
“Let’s call it what it is — an abject failure — as Chinese shares opened sharply lower, sending a clear signal that the market is no longer buying half-hearted promises.”
Meanwhile, Yeap Jun Rong of IG added:
“A lack of new stimulus has been the cause of…
