Business
China’s Stocks Suffer Weekly Loss Amid Anticipation for Finance Minister’s Briefing: Market Awaits Potential Fiscal Package
Chinese shares end the week on a down note as investors tread carefully ahead of the financial minister's presentation. Market players are anticipating Finance Minister Lan Foan to disclose a financial plan that may involve the sale of government bonds and incentives to stimulate spending.
The CSI 300 Index dipped by 2.8 per cent, ending at 3,887.17, marking a 3.3 per cent decline over the past five days. This was the most significant weekly fall in nearly three months. The Shanghai Composite Index also decreased by 2.6 per cent and a comparable index monitoring Shenzhen stocks plummeted 3.9 per cent, primarily due to the smaller firms spearheading the sell-off.
The market in Hong Kong is shut due to a public holiday and is set to resume operations on Monday.
Market participants are eagerly awaiting the upcoming Saturday morning media briefing by Finance Minister Lan Foan. They are optimistic that Lan will announce a financial plan that might encompass government bond sales and incentives to stimulate consumer spending, a key factor in maintaining the US$3 trillion surge in the stock market over the last three weeks. If the presentation does not meet market forecasts, it could potentially hinder the rally.
"Should the eagerly awaited financial disclosure prove to be more rhetoric than reality, investors may face a harsh reality check come Monday," stated Stephen Innes, the managing director at SPI Asset Management in Bangkok.
If there's no significant money invested, this recovery could turn into another disappointing mirage in the continuous line of market failures. Investors are looking for significant returns, not just a small profit, and anything less could prompt them to pull out their investments.
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