(Bloomberg) -- Chinese markets reopened following their Golden Week break with investors hoping the National Development and Reform Commission would outline more stimulus measures. Here are the key takeaways from today’s events. Click here for our TOPLive blog:
- Stock markets in Shanghai and Shenzhen reopened for the first trading since Sept. 30, amid hopes they would extend a recent rally following the government’s Sept. 24 announcement of rate cuts, liquidity support for stocks, and other measures to shore up the economy
- The Shanghai Composite Index jumped as much as 10.1% after the 9:30 a.m. open, but closed the morning just 4.8% higher, partly in disappointment at the NDRC briefing. Chinese stocks in Hong Kong, which had traded during Golden Week, slumped, dragging down the benchmark Hang Seng Index as much as 10.1%, and it closed the morning down 5.6%
- NDRC Chairman Zheng Shanjie described China’s economy as “stable” and showing “progress”, saying fundamentals are unchanged and there’s confidence in meeting its economic growth target of around 5%. Despite the positive tone, stocks and commodities turned lower at the lack of specific measures. Many of his comments recapped earlier policies
- Zheng said China will expand loan-support policies to medium-sized firms, accelerate local government spending from bond sales, issue ultra-long sovereign bonds in 2025, boost subsidies for students. He reiterated the need to stabilize real estate, but didn’t give specifics
- The lack of new measures and announcements of new stimulus, plus the briefing’s general lack of urgency underwhelmed investors, who are mindful of other risks including the US election and the various conflicts in the Middle East, while many felt an urge to take profit from the rally. The general analyst verdict was that China reopened not with a bang but a whimper
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