(Bloomberg) — Chinese stocks gave back earlier gains as a much-anticipated joint ministry briefing on supporting the property market offered few new stimulus measures.
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The CSI 300 Index was down 0.1% as of 11:18 a.m., reversing a 1.3% rise. A Bloomberg Intelligence gauge of Chinese developer stocks tumbled more than 8%. The Hang Seng China Enterprises Index trimmed its advance to less than 1%.
China will expand a program to support “white list” projects to 4 trillion yuan ($562 billion) from about 2.23 trillion yuan already deployed, Housing Minister Ni Hong said, in some of the most concrete remarks in the press briefing. That’s after a newspaper run by the housing ministry had hinted Beijing will “hit a heavy punch combo,” setting market expectations high.
The market response suggests authorities face a high bar to satisfy traders and revive a faltering rally. Skepticism has been creeping back in as Beijing fell short of unleashing fiscal firepower that matches the surprise offered by the central bank’s policy blitz in late September. Thursday’s briefing may end as another let-down after those by the Ministry of Finance and the state economic planner triggered wild market swings with scant spending details earlier this month.
“Equity investors are looking for big headline numbers to drive stocks up further, while the government is more focused on bringing the economy and housing markets gradually back to health,” said Vey-Sern Ling, managing director at Union Bancaire Privee. “As long as there’s such a mismatch in expectations, all press briefings will inevitably be disappointing.”
Data due Friday is set to show the economy expanded 4.5% in the third quarter from a year ago, according to economists surveyed by Bloomberg. That would be the least since March 2023, intensifying a debate as to whether the stimulus measures announced so far will be enough to turn around the moribund economy.
Some investors are waiting for the second leg of the rally to resume as the CSI 300 Index heads for a correction. A delay in market revival would seem like a deja vu to traders who have been burnt by multiple false dawns over the past few years.
“While it cannot be said that no new policy measures have been introduced at all, they can hardly make the market feel any real breakthrough has been made,” said Shen Meng, a director at Beijing-based boutique investment bank Chanson & Co. “Investor confidence continues to shrink and the sentiment remains low, which will add pressure for Beijing to ramp up policy support in the future.”
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