While the economic growth and support packages announced by China in the last 2 weeks have led to significant rises in the country’s stocks, the correction of the outflows has been just as sharp. The press conference organised by China’s National Development and Reform Commission today created disappointment all over the world. The unfulfilled expectations were also reflected negatively on Chinese stocks.

Commission chairman Zheng Shanjie stated that he is confident that they will meet their growth targets this year, but the pressures on the Chinese economy continue to increase. Zheng’s announcement of a $28 billion spending plan to support the economy by the end of the year was also disappointing.

“I would not have organised a press conference not to announce anything new”

Speaking to the BBC, Alicia Garcia-Herrero, chief economist for the Asia-Pacific region at investment bank Natixis, said: “The market really expected more. The correction will be even stronger if the data on the Golden Week in terms of consumption is weak. The market is reacting to the lack of a real fiscal stimulus. I would not have organised a press conference not to announce anything new” she said.

After the disappointment caused by the press conference, there were big falls in Chinese shares traded in the USA.

Along with the shares of large companies such as Ali Baba, Tencent, Baidu, ETFs investing in Chinese stocks also saw a depreciation of more than 10%.