The KraneShares CSI China Internet ETF (KWEB) plummeted 13.07% in pre-market trading on October 8, 2024, as Chinese markets cooled off their sizzling rally after officials failed to inspire confidence in new stimulus plans aimed at reviving the slowing economy.
Chinese stocks initially surged at the open after the week-long Golden Week break, with the Shanghai Composite and the blue-chip CSI300 climbing to their highest levels in more than two years on expectations of aggressive economic measures. However, the rally lost steam as the day progressed, as economic planner chairman Zheng Shanjie failed to detail sufficiently big or new measures to address the country's growth concerns.
The disappointment over the lack of concrete policy action to support the economy and the property market triggered a sell-off across Chinese markets, with the Hang Seng index in Hong Kong plunging 9.4% in its heaviest fall since 2008. The fallout also spread to China-exposed assets worldwide, with the Australian dollar, iron ore, and mining stocks all declining.
