China’s Stimulus Runs Into Wall of Doubts in a Bearish Market
- Chinese shares post modest gains following unexpected rate cut
- Pessimism is limiting policy efforts to revive sentiment
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The lack of confidence is so entrenched among China’s equity investors that government efforts to boost growth are repeatedly met by calls for Beijing to do more.
Tuesday’s interest rate cut from the People’s Bank of China drew little enthusiasm from equity traders, with volumes about 25% lower than recent averages. Even news that China is considering a broad package of stimulus measures only boosted the CSI 300 Index by half a percentage point. It’s been languishing in a bear market for close to one and a half years.