China meeting disappointed, stocks crashed

The press conference in China, which investors have been eagerly waiting for since last week and which steps will be taken to support the economy will be announced, ended with great disappointment. After the meeting, there were great declines in the shares of Chinese companies traded in the USA with Heng Seng, one of the most important indices of Hong Kong.

While the economic growth and support packages announced by China in the last 2 weeks ensured significant increases in the country's stocks, the correction of the outlets was just as harsh. Today, the press conference held by the Chinese National Development and Reform Commission caused disappointment all over the world. The unanswered expectations also reflected negatively on Chinese stocks.

Commission president Zheng Shanjie stated in his statement that he is sure that they will meet their growth targets this year, but the pressure on the Chinese economy continues to increase. Zheng also announced that he had a $28 billion spending plan to support the economy by the end of the year, which was disappointing.

“There was no need for a meeting”

Speaking to the BBC on the subject, Alicia Garcia-Herrero, chief economist in the Asia-Pacific region of investment bank Natixis, said, “There was no need to hold a press conference for this. Markets expected much more. If the consumption figures during the holiday week are not good, the declines may be even more severe," he said.

After the disappointment caused by the press conference, there were large declines in Chinese stocks traded in the USA.

It was seen that there was a loss of more than 10% in ETFs that invested in Chinese stocks along with the shares of large companies such as Ali Baba, Tencent, Baidu.