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Chinese Stocks Drop as Xi's Milestone Speech Disappoints Traders

(Bloomberg) – Chinese equities declined as President Xi Jinping's speech on the country's four decades of reforms did little to lift sentiment. The Shanghai Composite Index closed down 0.8 percent, its lowest since Nov. 29. The tech-heavy ChiNext gauge fell 0.5 percent and Hong Kong's Hang Seng Index dropped 1.1 percent, wiping out an early advance. Trading volume on the Shanghai gauge was almost 30 percent below its 30-day average, according to data compiled by Bloomberg. With no specific policies mentioned by Xi, "investors should wait for the Central Economic Work Conference for a policy tone and measures from the two meetings early next year, "said Dai Ming, a Shanghai-based fund manager with Hengsheng Asset Management Co." It takes time for these policies to be rolled out and really have an impact. " Xi Says Reform and opening up is revolution in China's history The annual economic policy gathering will take place later this week, an event that has fueled speculation the government will release policy to aid growth. tax cuts may be top of the reform agenda for next year , China Daily reported Tuesday, citing an unidentified tax administration official. "A-share investors are usually conservative before such meetings," said Zhang Gang, a strategist with Central China Securities Co. in Shanghai. "It is still uncertain what kind of policies will be announced. Det er fortsatt at være set, hvor meget regeringen vil skære afgifter. Also the random in U.S. stocks overnight has affected sentiment, "he said. Equity markets were…

(Bloomberg) – Chinese equities declined as President Xi Jinping’s speech on the country’s four decades of reforms did little to lift sentiment.

The Shanghai Composite Index closed down 0.8 percent, its lowest since Nov. 29. The tech-heavy ChiNext gauge fell 0.5 percent and Hong Kong’s Hang Seng Index dropped 1.1 percent, wiping out an early advance. Trading volume on the Shanghai gauge was almost 30 percent below its 30-day average, according to data compiled by Bloomberg.

With no specific policies mentioned by Xi, “investors should wait for the Central Economic Work Conference for a policy tone and measures from the two meetings early next year, “said Dai Ming, a Shanghai-based fund manager with Hengsheng Asset Management Co.” It takes time for these policies to be rolled out and really have an impact. “

Xi Says Reform and opening up is revolution in China’s history

The annual economic policy gathering will take place later this week, an event that has fueled speculation the government will release policy to aid growth. tax cuts may be top of the reform agenda for next year , China Daily reported Tuesday, citing an unidentified tax administration official.

“A-share investors are usually conservative before such meetings,” said Zhang Gang, a strategist with Central China Securities Co. in Shanghai. “It is still uncertain what kind of policies will be announced. Det er fortsatt at være set, hvor meget regeringen vil skære afgifter. Also the random in U.S. stocks overnight has affected sentiment, “he said.

Equity markets were lower across Asia in the wake of a sell-off in the U.S., where the S & P 500 Index closed at its lowest in 14 months. The MSCI Asia Pacific Index dropped 1 percent.

Asia Stocks Drop After U.S. Slide to 14-Month Low: Markets Wrap

“Hong Kong and China stocks should have slumped to follow the U.S. to open, but they did not, which was unusual, “said Castor Pang, head of research at Core Pacific-Yamaichi International HK, adding that investors eventually took their cues from the U.S. to send stocks lower.

Other index and stock moves:

Shandong Gold Mining Co. among leading gainers on CSI 300 Index, rising 2.3%; PRECIOUS: Gold Holds Advance As Investors’ Wait Out This Storm’CSI 300 -1%, Shenzhen Composite -0.8%, HSCEI -1.2% Greentown China falls 11% in Hong Kong after plan to buy Aeon Life stake up 0.04% against the U.S. dollar, pairing 0.14% gain Yield on China’s 10-year government debt little changed at 3.38%

– With assistance from Sofia Horta e Costa.

To contact Bloomberg News staff for this story: Kana Nishizawa in Hong Kong at [email protected]; Jeanny Yu in Hong Kong at [email protected]; Amanda Wang in Shanghai at [email protected]

To contact the editors responsible for this story: Richard Frost at [email protected], Will Davies, David Watkins

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