Chinese stocks closed higher on Wednesday, though gains were trimmed as concerns persist about the effectiveness of recent economic support measures. The CSI 300 Index increased by 1.5% at the close after rising as much as 3.4% earlier in the day. Meanwhile, the Hang Seng China Enterprises Index saw its advance reduced to 0.5% from a peak of 3.4%.
Investor skepticism about Beijing’s ability to revive the economy remains strong, especially given the lack of details on policy implementation. “The policies don’t really address the root problems facing the real economy,” stated Shen Meng from Chanson & Co. Although the recent stimulus package, which includes liquidity support and a potential stock stabilization fund, has sparked hopes for future improvement, market watchers caution that previous rallies have been fleeting.
JP Morgan strategists noted that short covering may have fueled the recent rally, as short sales dipped below average levels. Despite the uncertainties, some experts believe that coordinated policy efforts could signal an economic upturn in 2025, highlighting value opportunities in Chinese equities.
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