China’s Shanghai-Shenzhen CSI 300 Index and the Shanghai Composite Index rose slightly on Tuesday, while Hong Kong’s Hang Seng Index fell 0.7%, extending sharp losses from the previous session.
Chinese markets struggled to find direction as investors were unimpressed with Beijing’s announcement of 10 trillion yuan ($1.6 trillion) worth of debt measures to support local governments.
But the measure is expected to provide little direct support to the economy. Investors were also disappointed by the lack of fiscal measures aimed at boosting personal consumption and supporting the real estate market.
China plans to cut home purchase taxes to support the real estate market, although stocks appeared to receive little support from the report, media reports said Tuesday.
Analysts said China may have refrained from taking further financial measures to gauge the impact of a Trump presidency on the country, given the president-elect’s pledge to impose steep trade tariffs on Beijing.
