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China’s blistering stock market rally cooled on Tuesday after Beijing officials held off on unveiling more stimulus for the world’s second-largest economy.
The blue-chip CSI 300 index of Shanghai- and Shenzhen-listed stocks surged 10.8 per cent upon opening after a week-long holiday, before falling back to close 5.9 per cent higher. Markets were disappointed by the lack of significant new fiscal spending announcements from state planners, analysts said.
Hong Kong’s Hang Seng index fell 9.4 per cent, its worst day since October 2008, after having risen 11 per cent over the previous five days. The Hang Seng Tech index tumbled 12.8 per cent. Traders speculated that investors were selling Hong Kong assets to fund mainland trades.
Investor expectations had been building that President Xi Jinping’s economic planners would detail their plans for greater fiscal…