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Hong Kong stocks fell on Monday after a fiscal stimulus package announced by authorities last week to help shore up China’s economy underwhelmed investors.
Chinese equities had climbed over the past week with expectations of more details on Beijing’s stimulus plan following a monetary policy blitz at the end of September.
But investors were disappointed by the lack of measures targeting consumption. The city’s benchmark Hang Seng index, a barometer of foreign investor sentiment towards China, closed down 1.5 per cent.
“Investors are unwinding bullish bets as they feel the major event is over and they are a bit let down,” said Jason Lui, head of Asia-Pacific equities and derivatives strategy at BNP Paribas.
Lui noted that mainland markets were benefiting from increased retail participation and the central…
