China’s stocks retreat while traders await clarity on stimulus policies amid holiday week

China’s stocks retreat while traders await clarity on stimulus policies amid holiday week

China’s stocks fell for the first time this week, as investors struggle to find a catalyst for powering the trading pause in many global markets during the Christmas holiday week.

The CSI 300 Index, which tracks 300 of the largest stocks in Shanghai and Shenzhen, slid 0.2 per cent to 3,976.53 as of 9.56am local time. It is set to snap a three-day, 1.5 per cent gain. Christmas is not a public holiday China.

The Shanghai Composite Index fell by the same amount. China’s utilities and energy stocks led declines in the industrial groups on the CSI 300, while technology and telecoms companies bucked the downward trend.

Chinese stocks have been rangebound over the past two months, as traders waited for the effective implementation of the government’s stimulus measures. Investors expected Beijing to deliver more interest-rate cuts and raise the government borrowing limit next year to spur growth.

The central bank held off from cutting a policy borrowing cost on Wednesday, leading analysts to conclude that the authority is reserving its policy tools for later to deal with the economic impact expected from any new tariff levied by the incoming Trump administration.

Amid the stand-off, one company made a trading debut on the stock market after an initial public offering. The shares of Fangzheng Valve Group, a Wenzhou-based producer of parts for industrial plants, surge more than sixfold from their offer price to 22.89 yuan when they began transacting in Beijing.

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