China Stimulus Rally Lasts Just 10 Minutes, Showing Trader Gloom

  • Beijing eases home purchase rules in a bid to boost economy
  • Benchmark CSI 300 Index reverses loss only to fall back again
China Eases Mortgage Rules in Bid to Boost EconomySource: Bloomberg
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A short-lived rally in Chinese stocks after Beijing’s latest attempt to shore up growth is underscoring the depth of investor pessimism toward the world’s second-largest economy.

The Friday afternoon unveiling of property stimulus measures sparked an initial flurry of buying, with China’s benchmark CSI 300 Index reversing losses to climb as much as 0.3%. But the gauge resumed declines after about 10 minutes, sliding to a fresh session low before ending the day down 0.4%.