Comment on The markets saw right through China's latest economic support hype

The markets saw right through China's latest economic support hype

China's domestic stock markets are dominated by individual, not professional, investors.VCG/Getty ImagesChina's stock markets slumped after a 10-day rally that was driven by Beijing's stimulus announcement in September.Investors were disappointed when a hyped-up Chinese government press briefing failed to deliver more stimulus.Retail investors dominate China's markets, influencing sentiment and market movements.China's top leadership has a problem with its economic stimulus: its own investors at home saw right through the hype this week.China's domestic stock markets slumped on Wednesday after a 10-day blitz culminated in a two-year high.The mainland's benchmark CSI 300 Index closed 7.1% lower, while leading indices in Shanghai and Shenzhen ended the day 6.6% and 8.7% lower.China's domestic stock markets are dominated by over 200 million mom-and-pop retail investors, who account for about 70% of the trading volume.

 

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