China’s stock markets had a volatile day on Monday, showing mixed responses to the finance ministry’s latest fiscal policies, released during a closely watched briefing over the weekend.
Hong Kong shares dropped 0.75% while its mainland peers rebounded, including the Shanghai Composite’s 2.07% gain, although the rally slowed.
While some investors remained hopeful on Beijing’s promise of fiscal support, analysts warned that the fiscal measures, along with the central bank’s monetary easing in late September, are neither aggressive enough nor growth boosting although they are in “the right direction” to address structural issues facing the world’s second-largest economy.
Disappointing fiscal stimulus
“Markets conversation has already started to come up with the consensus that monetary injection or interest rate cuts cannot fix the fundamental problem,” Raymond Yeung, the Hong Kong-based chief…
