China’s stocks cap weekly loss as caution prevails before finance minister’s briefing

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Investors expect Finance Minister Lan Foan to unveil a fiscal package that could include government bond sales and subsidies to boost consumption

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Investors monitor an electronic stock board at a securities firm in Nanjing, Jiangsu province. Chinese stocks fell on Friday. Photo: Xinhua

Zhang Shidongin Shanghai

Published: 10:23am, 11 Oct 2024Updated: 3:18pm, 11 Oct 2024

Chinese stocks fell, with a key benchmark capping a weekly loss, as caution prevailed before a high-stakes government press conference where a major fiscal stimulus package could be announced.

The CSI 300 Index slid 2.8 per cent to 3,887.17 at the close, taking the five-day loss to 3.3 per cent. The weekly decline was the steepest in almost three months. The Shanghai Composite Index retreated 2.6 per cent and a similar gauge tracking stocks in Shenzhen slumped 3.9 per cent, with smaller companies leading the sell-off.

Hong Kong’s market is closed for a public holiday and will reopen on Monday.

Investors are looking forward to the press conference on Saturday morning by Finance Minister Lan Foan. They expect Lan to unveil a fiscal package that could include government bond sales and subsidies to boost consumption, which is crucial to sustain the US$3 trillion stock bull run over the past three weeks. Failure to meet market expectations could hobble the rally.

“If the much-anticipated fiscal reveal turns out to be more talk than action, investors could be in for a brutal Monday wake-up call,” said Stephen Innes, managing director at SPI Asset Management in Bangkok.

“Without real cash hitting the table, this rebound risks becoming yet another false dawn in a long string of market letdowns. Investors want fireworks, not just a spark and anything less could send them running for the exits.”