After China reopened following a week-long holiday on Tuesday, investors hoping for additional stimulus measures were disappointed, causing Chinese stocks to plummet.
Bloomberg reported that while the Chinese government stated that it would accelerate spending at a crucial policy meeting, it mostly reiterated its previous plans to boost investment and aid for newly graduated students and low-income groups. Investors had hoped that the mostly monetary-focused stimulus that was announced last month would be accompanied by a slew of fiscal spending measures.
Despite having gained more than a fifth in the past few weeks, the iShares MSCI China ETF (MCHI) was down more than 11% during the day on Tuesday.
Alibaba (BABA), JD.com (JD), and Temu parent PDD Holdings (PDD) all saw losses of approximately 6% in their shares that are listed in the United States.
