Chinese stocks tumble as Beijing tries to shore up confidence in economy

finance
Created 10/9/2024
Updated 10/9/2024

Chinese stocks fell over 7% on Wednesday, marking their biggest drop since February 2020, as investors doubt Beijing’s ability to revive growth. The sell-off followed a meeting where policymakers offered no new spending plans, disappointing markets. Investors are now looking to a Saturday briefing by the finance ministry for signs of additional fiscal stimulus. Economists believe up to ¥10tn (USD1.4tn) in fiscal measures is needed to boost the economy, but high public debt and falling local government revenues limit Beijing’s options. Weak household demand and a property crisis continue to weigh heavily on growth.

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