Alibaba, Temu Parent PDD Tumble as China’s Lack of Fresh Stimulus Disappoints

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KEY TAKEAWAYS

• Chinese stocks tumbled Tuesday after China reopened after a week-long holiday and disappointed investors craving for further stimulus measures.
• During a key policy meeting, the Chinese government reportedly said it would speed up assign but otherwise didn’t offer much new information.
• The iShares MSCI China ETF fell more than 11% intraday Tuesday.

Chinese markets tumbled Tuesday after China reopened after a week-long holiday and disappointed investors hoping for further stimulus gauges.

During a key policy meeting, the Chinese government said it would speed up spending but otherwise mainly repeated its before-mentioned plans to increase investment and boost help for fresh graduates and low-income groups, Bloomberg reported. Investors had been hoping for a slew of economic spending measures to accompany the mainly monetary-focused stimulus announced last month.

The iShares MSCI China ETF (MCHI), which has progressed more than a fifth in recent weeks, was down more than 11% intraday Tuesday.

U.S.-listed stakes of Chinese e-commerce giants Alibaba (BABA), JD.com (JD), and Temu parent PDD Holdings (PDD) fell around 6%.

Read the original article on Investopedia.