TME - Will China's Recent Financial Policy Patchwork Mend Alibaba And Tencent? | Benzinga
China is doing what it can to shore up investor confidence as the Chinese equivalent of the SPDR S&P 500 ETF Trust (NYSE:SPY), the Shanghai Stock Exchange Composite Index (SSE), is trading around the same price as it was when the year started, giving up the gains it enjoyed throughout the first eight months of 2023.
What Happened: The Xi Jinping-led country is dealing with an economic rout, triggered by declining exports, weak domestic demand a historic real estate crisis, among other headwinds.
To that end, China's Ministry of Finance reduced its "stamp duty" on securities transactions to 0.05% over the weekend — an effort to spur market activity and boost sentiment.
And, it worked — for a few hours.
At first, Chinese markets responded enthusiastically, with mainland stocks on the CSI 300 Index jumping 5.5% higher. As the session wore on, the rally lost its steam, eventually settling just 1.2% higher.
International investors seem to ...