Chinese Stocks Plunge as Stimulus Hopes Fade
Chinese Stocks Plunge as Stimulus Hopes Fade Source-economictimes.indiatimes.com Hong Kong Faces Worst Daily Decline Since 2008 Financial Crisis Chinese stock markets experienced a sharp downturn following weeks of strong performance, with the Hang Seng Index in Hong Kong plunging more than 9% on Tuesday, marking its worst single-day drop since October 2008. Mainland China’s Shanghai Composite Index also faced significant volatility, but managed to close 4.6% higher after a rollercoaster trading day. Investors, who had enjoyed a rally fueled by optimism, were caught off guard by a sudden wave of profit-taking, sparked by disappointment over the absence of aggressive fiscal stimulus from Beijing. Hopes that China’s government would introduce bold economic support measures were dashed, leading to a massive selloff. The timing of the decline, immediately after a holiday week, added to the market’s instability, with traders rushing to secure profits amid growing uncertainty about the fut