As Chinese stocks slide, should investors hold their breath for a Beijing bazooka?

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As Chinese stocks slide, should investors hold their breath for a Beijing bazooka?
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Expectations of fiscal stimulus stoked a market rally that fizzled out this week

Chinese stocks tumbled on Wednesday, curbing a historic rally after an anticipated fiscal stimulus announcement failed to materialise. The benchmark CSI 300 index closed down 7.1 per cent, reflecting the lack of clarity around the next steps in Beijing’s stimulus programme to boost economic growth and markets.

The commission said it was “co-ordinating with relevant departments to expand effective investment” and “fully implement and accelerate” the steps outlined by the politburo, a tone HSBC analysts said was “constructive”. They added that another “window for action” beckons when the National People’s Congress standing committee meets towards the end of October.

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