China’s Fragile Stocks Show Beijing Needs to Act Fast on Pledges
- Equities end lower after a sharp rally in the previous session
- Morgan Stanley says follow-through of policy measures is key
This article is for subscribers only.
Chinese stocks resumed declines on Wednesday, underscoring the need for authorities to act quickly for the market to sustain the sharp rebound seen after policymakers’ latest pledges to revive the economy.
The Hang Seng China Enterprises Index, which tracks major Chinese companies listed in Hong Kong, dropped 0.8% after surging 5.3% in the previous session. A Bloomberg Intelligence gauge of real estate stocks was little changed following a 10% jump.