Hong Kong Stocks Drop 9% After Disappointing Fiscal Policy, Is the Rally Over?

Investors were anticipating a "bazooka" fiscal stimulus, but what they got offered little novelty.

• China would front-load 100 billion yuan from the 2025 central budget for near-term use. But this isn’t new funding.

• Motherhood statements on supporting small and medium-sized enterprises, revitalizing idle land, and addressing the property market’s stock of housing.

• 3.12 trillion yuan allocated for special bonds this year, 2.83 trillion yuan had already been issued, leaving around 290 billion yuan for project construction. Again, this is not fresh capital.

The underwhelming fiscal policies sent Hang Seng Index down 9.4%. Is this rally over? Read more: https://drwealth.com/hong-kong-stocks-drop-9-after-disappointing-fiscal-policy-is-the-rally-over/