Market Slump: China's Economic Policy Meeting Fizzles Out
Chinese stocks fell sharply following an economic policy meeting that reiterated existing financial pledges without introducing new incentives. The Shanghai Composite and Hang Seng Index experienced significant losses. Analysts suggest this decline was due to the lack of fresh economic measures, impacting sectors like financials and real estate.

Chinese stocks faced a sharp downturn on Friday after an economic policy meeting failed to offer fresh incentives, leading to the heaviest losses recorded in three weeks. The Shanghai Composite index fell by 2% to 3,391.88 points, while the blue-chip CSI300 index saw a similar downturn of 2.37%. As a result, all earlier gains for the week were wiped out.
Hong Kong's Hang Seng Index mirrored this trend with a 2.1% drop to 19,971.24, marking its biggest decline in a month. A readout from the Central Economic Work Conference reiterated commitments to increasing debt issues and maintaining economic growth but disappointed investors who were looking for novel assurances.
Analysts from ANZ described the meeting as a recap of existing stimulus measures rather than a new economic boost. Key sectors such as financials, consumer staples, and real estate experienced declines, with specific companies like Developer Longfor facing a 7.3% drop. Bond yields also fell, reflecting the market's tepid response to policy reiterations.
(With inputs from agencies.)