China ADRs & ETFs continued to fall in overnight trading. YINN fell 13%; CHAU fell over 10%; Bilibili dropped nearly 10%; XPeng, Nio fell 6%; iQiyi, PDD Holdings, JD.com fell over 4%.
China A50 index futures fell 3.6% after a 4.6% rally in prior session.
China ADRs & ETFs skyrocked on Monday. China will adopt an "appropriately loose" monetary policy next year as part of steps to support economic growth, state media reported on Monday citing a Politburo meeting, marking the first such shift towards loosening since 2010.
China may raise its budget deficit to the highest in three decades and make the deepest interest-rate cuts since 2015 following the boldest stimulus signals from its top leaders in years, according to economists.
At least seven Chinese brokerages forecast that next year’s fiscal deficit target could reach 4% of gross domestic product, the widest since a major tax reform in 1994. Beijing has historically kept its budget deficit ratio at or below 3%.
Six of the brokerages expect policy rate cuts of 40 to 60 basis points next year, echoing earlier predictions from several foreign banks, according to research notes published since late Monday after a meeting of top leaders.
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