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Chinese stocks have suffered their worst fall in 27 years after efforts by Beijing to stimulate the world\u2019s second-largest economy disappointed investors.<\/p>\n

Stock markets in Asia fell sharply after China\u2019s top economic planning authority failed to announce further measures to improve flagging growth.<\/p>\n

On Tuesday, the National Development and Reform Commission held a press conference in which officials were expected to reveal specific policies to supplement the stimulus measures<\/a> announced last month.<\/p>\n

However, the hoped-for policy plans were not forthcoming. Instead, the NDRC officials mostly summarised September\u2019s announcements and commented on the general economic situation.<\/p>\n

The disappointment pierced the stock frenzy that had rallied the market in the days after the September stimulus announcement. On Wednesday, the Shenzhen composite index tumbled by 8.2% in its biggest fall since May 1997, while the Shanghai stock exchange lost 6.6% and the benchmark CSI 300 slid by 7.1% after the Golden Week holiday. Hong Kong\u2019s Hang Seng was down by 1.8%.<\/p>\n

However, the markets remain higher than where they had been a month ago, before the central bank and the politburo proposed a \u201cpackage of incremental policies\u201d to stabilise China\u2019s ailing economy. The CSI 300 index is 7% higher than it was a year ago.<\/p>\n

Certain fiscal measures, such as the issuance of government bonds, require the approval of China\u2019s legislature, the National People\u2019s Congress. The NPC\u2019s standing committee meets in late October, an event that will be closely watched by analysts and investors for signs about further stimulus measures.<\/p>\n

Richard Hunter, the head of markets for the trading platform Interactive Investor, described Wednesday\u2019s stock market falls as a reflection of \u201cinvestor disappointment\u201d. He said: \u201cThe main concern was that the raft of measures announced prior to last week\u2019s holiday \u2013 which had lit the fire under a moribund market \u2013 were not followed up with any specific actions from the authorities, or indeed further plans.\u201d<\/p>\n

Alvin Tan, the head of Asia FX strategy at RBC capital markets, told Reuters that investors had expected stimulus measures worth 2tn-3tn yuan to be announced this month. Positive sentiment \u201cwill turn quickly if we don\u2019t get some package at least matching\u201d that range, Tan said.<\/p>\n

China\u2019s economy has struggled to recover from the coronavirus pandemic and is beset by a range of structural and geopolitical problems, including a struggling property market<\/a>. According to official statistics<\/a>, the urban youth unemployment rate reached 18.8% in August, while the urban unemployment rate across all age groups was 5.3%.<\/p>\n

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There are growing concerns that China will miss its own 5% annual growth target<\/a>, a relatively modest goal by historical standards.<\/p>\n

Meanwhile, the government is engaged in a tit-for-tat trade war with the EU, one of China\u2019s most important trade partners. On Tuesday, Beijing announced<\/a> tariffs on imports of European brandy and said that it was considering duties on imported petrol cars. The levies followed a vote by EU leaders<\/a> to tax imports of Chinese electric vehicles.<\/p>\n<\/div>\n

Source: www.theguardian.com<\/p>\n","protected":false},"excerpt":{"rendered":"

Chinese stocks have suffered their worst fall in 27 years after efforts by Beijing to stimulate the world\u2019s second-largest economy disappointed investors. Stock markets in Asia fell sharply after China\u2019s top economic planning authority failed to announce further measures to improve flagging growth. On Tuesday, the National Development and Reform Commission held a press conference…<\/p>\n","protected":false},"author":4,"featured_media":92739,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"WB4WB4WP_MODE":"","WB4WP_PAGE_SCRIPTS":"","WB4WP_PAGE_STYLES":"","WB4WP_PAGE_FONTS":"","WB4WP_PAGE_HEADER":"","WB4WP_PAGE_FOOTER":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[4],"tags":[],"class_list":["post-92738","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"yoast_head":"\n